In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by one that is temporary?
A) The LM curve B) The IS curve C) The FE line D) The labor demand curve
From 1980 to 2012, the black-white wage ratio for males in the United States
A. increased substantially from under 0.5 in 1980 to almost 1.0 in 2012. B. increased modestly from 0.7 in 1980 to about 0.8 in 2012. C. held constant at about 0.7. D. fell steadily from about 1.0 in 1980 to 0.5 in 2012. E. increased substantially from 0.4 in 1980 to over 0.8 in 2012.
Which of the following statements about economic models is TRUE?
A. The predictive power of models is not as important as they serve the preferences of economists. B. Every economic model is based on a set of assumptions. C. Economic models are designed so that every detail of the real world can be analyzed. D. Economic models are not empirically testable.
Capitialism= Economic system based on accumulation and investment of capital by individuals who then use it to produce goods or services.
Answer the following statement(s) true (T) or false (F)