The Classical view of the economy is characterized by:
a) A laissez-faire approach.
b) The belief that demand creates its own supply.
c) Overt fiscal policy.
d) The inherent instability of the economy.
Answer: a) A laissez-faire approach.
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Use the following table to answer the next question.OutputATC-1ATC-2ATC-3ATC-41,500$10$15$20$302,00091217252,50081015203,00012713183,50015611164,00018107144,50020128125,00024151195,500291913126,00035251514Plant sizes get larger as you move from ATC-1 to ATC-4.The firm's minimum efficiency scale occurs at what level of output?
A. 2,500 units B. 4,000 units C. 3,500 units D. 3,000 units
What is not an accurate description of US immigration?
a. Significant immigration from continental Europe started after the War of 1812. b. Most immigrants in the initial period of the US came from NW Europe, were replaced first by immigrants from Asian nations, which were eventually replaced by immigrants from SE Europe. c. Large scale immigration from Latin America to the US started since the Depression.
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
According to the traditional Keynesian analysis, if the government increases spending by $20 million, then
A. consumption will decrease, and so total expenditures will increase by less than the $20 million. B. consumption will remain the same, and so total expenditures will increase by exactly $20 million. C. consumption will increase, and so total expenditures will increase by more than $20 million. D. consumption will increase or decrease, and so total expenditures will increase or decrease depending on the change in consumption.