Which of the following events led to the crisis in macroeconomics and to the development of rational expectations theory?
A) the Great Depression
B) the stock market crash of 1987
C) the stock market speculative bubble of the late 1990s
D) stagflation in the 1970s
E) large budget deficits in the 1980s
D
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"The decision to employ an additional unit of labor depends on whether the value of marginal product is greater than or smaller than the wage rate." Is the previous statement correct or incorrect?
What will be an ideal response?
Questions of what to produce, how much to produce, and who will get the output must be faced by
a. market economies. b. centrally planned economies. c. the economies of underdeveloped countries. d. all economies.
A situation in which both players can adopt moves such that each player's move is its most profitable response to the move of the other is the
a. prisoner's dilemma. b. Nash equilibrium. c. maximin criterion. d. tacit collusion.
A headline reads "Good weather increases the lettuce crop." This situation would lead to a(n):
a. Decrease in the price of lettuce and an increase in the quantity purchased b. Increase in the price of lettuce and quantity purchased c. Decrease in the price of lettuce and decline in quantity purchased d. Increase in the price of lettuce and decrease in quantity purchased