Which of the following statements about economic fluctuations istrue ?
A. A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together.
B. Economic fluctuations have been termed the "business cycle" because the movements in output are regular and predictable.
C. A depression is a mild recession.
D. A recession is when output rises above the natural rate of output.
E. None of these answers are true.
Answer: A. A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together.
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What is a factor market?
A) It is a market where financial instruments are traded. B) It is a market where resources used to produce final goods are traded. C) It is a market where stocks and bonds are traded. D) It is a market where producers buy consumption and capital goods.
Before digital photography, most film processing companies had a policy of printing every picture on a roll of film and allowing customers to request a refund for pictures that were not clearly developed
The companies did this knowing that most customers did not ask for refunds. This was an example of consumers A) being overly optimistic about their future behavior. B) not making themselves aware of the policy regarding refunds. C) failing to ignore sunk costs. D) not taking nonmonetary opportunity costs into account.