Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decides to stay home and work on the paper. According to the Scarcity Principle, the reason Josh doesn't go to the game is that:
A. going to the game won't be fun.
B. Josh can't go the game and finish the paper.
C. writing the paper is easier than going to the game.
D. Josh prefers schoolwork to football games.
Answer: B
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Lucas argues that when policies change, expectations will change thereby
A) changing the relationships in econometric models. B) causing the government to abandon its discretionary stance. C) forcing the Fed to keep its deliberations secret. D) making it easier to predict the effects of policy changes.
If we consider the reality that each worker has different skills, then the production possibilities frontier
A. would display a constant opportunity cost of a good as more of that good is produced. B. would display a decreasing opportunity cost of a good as more of that good is produced. C. would display an increasing opportunity cost of a good as more of that good is produced. D. cannot be drawn, as too many variables would need to be taken into consideration.
If the price elasticity of demand is very elastic, which of the following could be a possible value of the elasticity?
A. 2 B. 1 C. 1/3 D. 0
The materials balance model
a. captures only environmental pollution b. explicitly illustrates both the flow of resources and the flow of residuals c. illustrates both the money and real flows d. all of the above e. (b) and (c) only