In the Keynesian model, changes in aggregate supply
a. are the primary determinant of inflation.
b. could only destabilize the economy.
c. are ignored.
d. None of the above
C
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Why are generic pharmaceuticals significantly cheaper than name brand ones?
A.Generic pharmaceuticals are not protected by patent law, B.Brand name pharmaceuticals are not protected by patent law, C.The government allows knockoffs of patent-protected medicines in some cases. D.Generic pharmaceuticals are made by foreign companies that have lower costs.
The real wage rate is $35 an hour. At this wage rate there are 100 billion labor hours supplied and 200 billion labor hours demanded. There is a
A) shortage of 300 billion hours of labor. B) shortage of 100 billion hours of labor. C) surplus of 100 billion hours of labor. D) surplus of 300 billion hours of labor. E) shortage of 200 billion hours of labor.
If the elasticity of demand for a service is 0.4 and price is raised,
A. total revenue will fall. B. total revenue will rise. C. total revenue will stay the same. D. there is no way to determine whether total revenue will rise, fall, or remain the same.
The price of borrowing is known as the:
A. equilibrium price. B. transaction cost. C. interest rate. D. None of these is true.