The principle of revealed preference would say that if Xavier chooses market basket A over market basket B then:
A) if A is more expensive than B, then Xavier must prefer A over B.
B) if A is more expensive than B, then Xavier must prefer B over A.
C) if A is less expensive than B, then Xavier must prefer A over B.
D) if A is less expensive than B, then Xavier must prefer B over A.
A
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Explain why resources are used efficiently in a competitive market
What will be an ideal response?
The marginal product of labor (MPL) can be calculated from the following ________
A) the labor share of income and the average output per unit of labor B) the labor share of income and average labor per worker C) output and labor D) the labor share of income and output E) none of the above
According to the early Keynesians,
a. the money demand function was unstable; the interest elasticity of money demand was extremely high; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity. b. the money demand function was stable; the interest elasticity of money demand was low; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity. c. the money demand function was unstable; the interest elasticity of money demand was low; and, therefore, changes in the quantity of money did not have important effects on the level of economic activity. d. the money demand function was stable; the interest elasticity of money demand was high; and, therefore, changes in the quantity of money did have important effects on the level of economic activity.
Which of these changes was observed in the U.S. between 1929 and 1933?
a. The aggregate supply curve shifted inward with no change in the aggregate demand curve. b. The aggregate demand curve shifted inward with no change in the aggregate supply curve. c. The aggregate demand curve shifted outward with no change in the aggregate supply curve. d. The aggregate supply curve shifted outward with no change in the aggregate demand curve. e. The aggregate supply and demand curves both shifted outward.