How rapidly does the economy's self-correcting mechanism work? Most economists agree that it
a. works quickly and reliably.
b. works slowly and not very reliably.
c. works reliably, but not very quickly.
d. does not work at all.
b
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A key assumption of Ricardo's economic rent concept was that
A) all land is equally productive. B) land is too differentiated to be able to measure. C) only land in large cities matters. D) land is always cheap and needs development.
Suppose a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $20 million. This firm's accounting profit is:
a. $80 million. b. $70 million. c. $10 million. d. ?$10 million.
Barriers to entry enable many monopolists to
A. manipulate the government into providing special favors for themselves. B. make people buy more of a good than they really want. C. charge as high a price as they want. D. earn economic profits in the long run.
If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the
A. encouraged worker effect. B. fallacy of composition. C. discouraged worker effect. D. none of the above