(Consider This) During the Great Recession of 2007-2009, both real interest rates and investment spending declined. This suggests that:
A. the investment demand curve was positively sloped during this period.
B. purchases of capital from abroad increased, and these were not reflected in investment
spending figures for that period.
C. firms were optimistic about future sales.
D. the investment demand curve shifted inward.
D. the investment demand curve shifted inward.
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Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.
Which of the following is a TRUE statement about the economic assumption of rationality?
A) Individuals who are rational necessarily ignore the interests of others. B) Individuals generally act as though they are rational. C) Individual behavior may be irrational but group behavior is always rational. D) People make decisions as if they are omniscient.
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax revenue paid by the seller is
A. $600. B. $300. C. $2100. D. $900.
During the Great Depression, this group of economists assured everyone that the setbacks in production and employment were temporary and would soon vanish:
A. Monetarist economists. B. Supply-side economists. C. Classical economists. D. Keynesian economists.