The unexpected consequence of the paradox of thrift is because people try to save more
a. saving increases
b. national income increases
c. consumption increases
d. national income falls
e. investment increases
D
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Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?
A. It is slow. B. It is not very reliable. C. It works only when supplemented by automatic stabilizers. D. All of these responses are correct. E. Options a and b only are correct.
In economics, scarcity implies
A) disutility. B) utility. C) choice. D) inefficiency. E) a, c, and d
Which expression is another way of saying "marginal cost"?
A. average cost B. total cost C. scarcity D. additional cost
At the optimal production point, the firm in Figure 7.3 will:
A. make a zero economic profit. B. suffer a loss. C. make a positive economic profit. D. break even.