In macroeconomics,it's often verydifficult for economists to create experiments to generate data,so what must they doinstead?

a. select a committee of economists to make up data for all economists to use

b. use hypothetical, computer-generated data

c. use whatever data the world gives them

d. do without data

Assume that a worker in England can produce either 10 units of organic grain or 2 units of incense per year, and a worker in New Zealandcan produce either 5 units of organic grain or 15 units of incense per year. Now suppose there are 10 workers in England and 20 workers inNew Zealand. Right now, the two countries do not trade. England produces and consumes 50 units of grain and 10 units of incense per year.New Zealandproduces and consumes 100 units of grain and no incense per year. The combined output of the two countries is therefore 150 units of grain and 10 units of incense per year. If the two countries decided to trade and completely specialize in producing the good for which each has a comparative advantage, what would the combined yearly output of the two countries be?

a. 50 units of grain and 40 units of incense

b. 100 units of grain and 300 units of incense

c. 150 units of grain and 20 units of incense

d. 200 units of grain and 150 units of incense

Suppose iPhones are normal goods. What will happen to the equilibrium price and quantity of iPhones if phone plans become more expensive, fewer firms produce smart phones, and smart phone users experience a decrease in income?

a. price will fall and the effect on quantity is ambiguous

b. quantity will fall and the effect on price is ambiguous

c. quantity will rise and the effect on price is ambiguous

d. price will rise and the effect on quantity is ambiguous