Finance and Development Quiz
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Questions and Answers

What did Adam Smith label the modern economy as?

  • The conspicuous mechanism
  • The invisible hand (correct)
  • The visible machine
  • The transparent market
  • What do economists use to enhance their understanding of the invisible hand?

  • Guesswork
  • Superstitions
  • Anecdotes
  • Models (correct)
  • What do economists call the empirical regularities observed in economies?

  • Unsubstantiated claims
  • Coincidental occurrences
  • Stylized facts (correct)
  • Random observations
  • What signals do economies emit as they allocate goods and services?

    <p>Measurable signals</p> Signup and view all the answers

    What relationship seems to exist between inflation and the rate of unemployment in the short term?

    <p>A negative relationship</p> Signup and view all the answers

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