The economist who argued that most prices in a mixed economy are set by the nation's largest corporations was
A. Adam Smith.
B. Karl Marx.
C. John Maynard Keynes.
D. John Kenneth Galbraith.
D. John Kenneth Galbraith.
You might also like to view...
The Solow growth model tells us that the standard living in country A can be higher than in country B for all the following reasons, except
A) country A has lower population growth than country B. B) country A has a higher savings rate than country B. C) country A has a higher depreciation rate than country B. D) country A has higher total factor productivity than country B.
The fact that an economy always returns to the natural rate level of output is known as
A) the excess demand hypothesis. B) the price-adjustment mechanism. C) the self-correcting mechanism. D) the natural rate of unemployment.
Most Keynesians suggest that the Fed
A) use discretion in setting monetary policy. B) use fiscal policy to combat unemployment in the short run. C) follow a rule, such as keeping the money growth rate at 3%, regardless of the state of the economy. D) use fiscal policy to combat inflation in the long run.
An advantage of the proprietorship as a form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) that it is easy to form. D) that it can sell bonds to the public.