Which of the Following Is NOT an Appropriate Way to Cope

question 18

Multiple Choice

Which of the following is NOT an appropriate way to cope with the imperfections in macroeconomic statistics such as the unemployment rate?

• A) Understand how each statistic is calculated to know its limitations.
• B) Be aware of supplemental data the government collects that might add insights on an issue.
• C) When different versions of a statistic are available, use the version that is most appropriate to the analysis being conducted.
• D) Assume that macroeconomic statistics should not be relied on to provide measures of economic issues.

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Definitions:

Free Trade

The policy of allowing unrestricted import and export of goods between countries, without tariffs, quotas, or other restrictions.

Total Surplus

The sum of consumer and producer surplus, which measures the total benefit to society from conducting transactions in a market.

Autarky

A situation where an economy is self-sufficient and does not engage in international trade.

Trade

The exchange of goods, services, or both between two or more parties.