People acting in their own self-interest is the basis of the:
A. principle of supply and demand.
B. principle of voluntary exchange.
C. real-nominal principle.
D. principle of scarcity.
Answer: B
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In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is
A) a leftward shift in Germany's demand for money curve. B) a downward movement along Germany's demand for money curve. C) a rightward shift in Germany's money supply curve. D) an upward movement along Germany's demand for money curve.
In many business situations one firm will act first, and then other firms will respond. To help analyze these types of situations economists use
A) follow-the-leader-games. B) sequential games. C) retaliation games. D) bargaining games.
All of the following are criteria used to select a forecasting technique EXCEPT:
a. the accuracy required of the forecasting model b. the time required to complete the model c. the complexity of the relationships being forecast d. the cost associated with developing the forecasting model e. all of these are criteria used to select a forecasting technique
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. A change from combination C to B means that:
A. 1 unit of steel is given up to get 75 units of wheat
B. 2 units of steel are given up to get 75 units of wheat
C. 1 unit of steel is given up to get 15 more units of wheat
D. 2 units of steel are given up to get 15 more units of wheat