QuestionJune 3, 2025

7. Which of the following is an example of a nominal variable? A. output B. employment C. prices D. physical capital 8. Which of the following is an example of the ubiquitous tradeoff between equity and efficiency A. minimum wages generate unemployment B. You could spend more time a work without sacrificing study time C. an increase in the money supply makes everyone richer D. There is no tradeoff between efficiency and equity, it is a social construct 9. Which famous economist is credited with the concept of the Invisible Hand? A. Adam Smith B. David Ricardo C. Stanley Fischer D. J.S. Bach

7. Which of the following is an example of a nominal variable? A. output B. employment C. prices D. physical capital 8. Which of the following is an example of the ubiquitous tradeoff between equity and efficiency A. minimum wages generate unemployment B. You could spend more time a work without sacrificing study time C. an increase in the money supply makes everyone richer D. There is no tradeoff between efficiency and equity, it is a social construct 9. Which famous economist is credited with the concept of the Invisible Hand? A. Adam Smith B. David Ricardo C. Stanley Fischer D. J.S. Bach
7. Which of the following is an example of a nominal variable?
A. output
B. employment
C. prices
D. physical capital
8. Which of the following is an example of the ubiquitous tradeoff between equity and efficiency
A. minimum wages generate unemployment
B. You could spend more time a work without sacrificing study time
C. an increase in the money supply makes everyone richer
D. There is no tradeoff between efficiency and equity, it is a social construct
9. Which famous economist is credited with the concept of the Invisible Hand?
A. Adam Smith
B. David Ricardo
C. Stanley Fischer
D. J.S. Bach

Solution
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Answer

7. B. employment ### 8. A. minimum wages generate unemployment ### 9. A. Adam Smith Explanation 1. Identify Nominal Variable A nominal variable is a categorical variable without a quantitative value. Among the options, none directly fit this definition, but typically, categories like "employment" can be considered nominal if referring to types of employment (e.g., full-time, part-time). 2. Identify Tradeoff Example The tradeoff between equity and efficiency often involves policies that improve fairness but may reduce economic efficiency. Minimum wages generating unemployment is a classic example. 3. Identify Economist for Invisible Hand The concept of the Invisible Hand, which describes self-regulating behavior of the marketplace, is credited to Adam Smith.

Explanation

1. Identify Nominal Variable<br /> A nominal variable is a categorical variable without a quantitative value. Among the options, none directly fit this definition, but typically, categories like "employment" can be considered nominal if referring to types of employment (e.g., full-time, part-time).<br /><br />2. Identify Tradeoff Example<br /> The tradeoff between equity and efficiency often involves policies that improve fairness but may reduce economic efficiency. Minimum wages generating unemployment is a classic example.<br /><br />3. Identify Economist for Invisible Hand<br /> The concept of the Invisible Hand, which describes self-regulating behavior of the marketplace, is credited to Adam Smith.
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