A Country That Has Many Well-Trained Macroeconomic Analysts Will Not

question 27

Multiple Choice

A country that has many well-trained macroeconomic analysts will not necessarily have more beneficial macroeconomic policies because

• A)economists' understanding of the economy remains poor.
• B)there are few ways in which economists' complex models can be applied to the real world.
• C)economists agree on so few government policies.
• D)economic policy is usually made by politicians,not economists.

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.

Short Run

A time period in economics during which at least one input is fixed while others are variable.

Marginal Products

The additional output that is produced by utilizing one more unit of a variable input, holding all other inputs constant.

Sales Clerks

Employees who assist customers, handle transactions, and maintain merchandise organization in retail environments.