In the Keynesian model, a $5 billion decrease in investment leads to ________ in equilibrium output.
A. a $5 billion decrease
B. no change
C. a $5 billion increase
D. a greater than $5 billion decrease
Answer: D
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Refer to the above figure. Which panel demonstrates the law of demand?
A) Panel A B) Panel B C) Panel C D) Panel D
The factor distribution of income:
A. refers to the pattern of income that people derive from different factors of production. B. shows how much income people get from labor compared to land and capital. C. hasn't changed substantially in the last century in the United States. D. All of these statements are true.
The general monitoring problem implies that:
A. government must intervene to protect national goals. B. competition will ensure common goals among the owners and managers of a firm. C. profit maximization should always be a firm's goal. D. there is a cost of supervising employees so that they work toward the owner's goals rather than their own.
The phenomenon which occurs when markets do not produce the most efficient outcome on their own is known as:
A. public goods. B. imperfect information. C. market failure. D. economic certainty.