A theory is an abstraction used often by economists to
a. describe a problem.
b. keep all assumptions in their proper places.
c. explain why things work the way they do.
d. describe a hierarchical ordering of facts.
e. arrange variables into a graphical format.
c
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Hughes and Cain (2011) talk about falling levels of investment during the Great Depression. What does the "investment" that they are talking about refer to?
(a) Engineering ideas behind the industry of the era (b) Money loaned by banks to consumers (c) Land, labor, and equipment used in production (d) Tools, equipment, machines, and buildings used in production
President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging
A) large inflows of foreign capital. B) large increases in domestic savings. C) an expansion of import substitution industrialization policies. D) more government ownership of industrial firms.