1.

Economics assumes people

Group of answer choices

try to advance their own projects in market and government processes.

tend to compete more in markets than they do in government.

tend to cooperate more in markets than they do in government.

try to pursue the public interest but find over time that only private interests matter.

2.

In development economics, an economy that is in its "catch up" phase

Group of answer choices

Is growing rapidly while its human and physical capital and state of technology "catch up" to the frontier (i.e., richest) economies

Is growing rapidly while its citizens are working more hours per week than can be sustained in equilibrium

Has achieved its steady state and grows at the same rate as average global growth

Usually has imports that exceed exports

3.

Neo-Malthusians such as Paul Ehrlich have

Group of answer choices

Continued to predict that population growth and overconsumption will soon lead to resource depletion and widespread global poverty and been proved wrong by events as global povery has declined.

Continued to predict that population growth and overconsumption will soon lead to resource depletion and widespread global poverty and been proved right by increases in global poverty.

b. Predicted more frequent recessions due to instability in the financial system.

Forecasted high growth rates of GDP per capita, and been proved right as the majority of people no longer experience scarcity.

4.

One feature that distinguishes Real Business Cycle theory from many other theories of the business cycle is that the role of ________ is not considered important.

Group of answer choices

Money

Rational expectations

Consumers

Utility maximization

5.

Monetarism's impact on monetary policy is evidenced through the commonly employed central bank tactic of

Group of answer choices

Quantitative easing

The Friedman rule

Currency devaluation

Discount window lending

6.

Investment, in economics, refers to

Group of answer choices

Spending on goods that are used to produce other goods. Examples would include computers and heavy machinery.

spending on stocks and bonds. Examples would include APPL and the 10-year Treasury bond.

Spending on foreign goods. Examples would include toys and televisions made in China.

All of these are examples of what economists refer to as investment.

7.

The "Friedman rule" states that the optimal rate of inflation

Group of answer choices

is actually negative (deflation)

cannot be known due to confusion about relative prices

depends on the level of asset prices

is 2% per year