Keynes argued that while the government should ensure that the overall level of aggregate demand is sufficient for an economy to reach full employment, the government should not attempt to set _________________.
a. export levels and wages
b. wages and benefits
c. prices and import levels
d. prices and wages
d. prices and wages
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If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would decrease
Indicate whether the statement is true or false
The most threatening and damaging detrimental externality at issue today is:
a. The explosion and oil spill at the Deepwater Horizon b. the continued pollution of city air due to factory emissions c. water shortages d. global warming
FarAwayDrive Inc. has recently increased the price of its golf balls from $40 to $6. In response to this increase in price, sales decreased from 2,200 to 1,800 units. If no other information concerning the demand is available, which of the following is true about the sensitivity of demand (using the ARC or midpoints formula) for FarAwayDrive's golf balls?
A. The ARC-elasticity (midpoints formula) of demand is 4/11 or .364. B. The ARC-elasticity (midpoints formula) of demand is 2/3 or .667. C. The ARC-elasticity (midpoints formula) of demand is 2.0. D. The ARC-elasticity (midpoints formula) of demand is ½ or .50.
The "vicious circle of poverty" for developing nations can best be described by:
A. Low levels of international trade that reduce exports and increase the dependence on imports B. Low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income C. A large government sector which reduces the availability of private investment spending but which increases macroeconomic stability D. A lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses