Which of the following thoughts do the Keynesian and the new Keynesian economists share?
a. The belief that wages and prices are not flexible in the short run
b. The belief that the aggregate supply curve is always a horizontal line
c. The belief that the government's role in the economy should be minimized
d. The belief that the natural rate of unemployment in an economy is always zero
e. The belief that prices are constant and that changes in aggregate expenditures determine equilibrium real GDP
a
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What is the difference between a public franchise and a public enterprise?
A) Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries. B) A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government. C) A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government. D) A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.
If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one. Which is the exception?
a. Economic profit is zero. b. A normal profit exists. c. Marginal cost must exceed marginal revenue. d. Acme has excess capacity. e. Firms have no incentive to enter or leave this industry.
An investor who wants to diversify his portfolio will buy only bonds when both stocks and bonds are expected to yield better returns
a. True b. False Indicate whether the statement is true or false
People can be prevented from using a good if the good is
a. a private good or a club good. b. a private good or a common resource. c. a public good or a common resource. d. a private good or a public good.