Which of the following is FALSE?
A. The classical economists relied on market forces to create full employment.
B. Keynes advocated an active government role for curing a recession.
C. Keynes suggested that full employment was a "rare and short-lived occurrence".
D. The classicals believed demand created its own supply.
D. The classicals believed demand created its own supply.
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Which phrase finishes this statement best? The net effect of a union increasing wages
A. is to lower non-union wages by an offsetting amount so national income is not changed. B. is that no one gains in the end since union shops cannot compete and do not survive. C. is to misallocate labor toward non-union work unless unionization enhances union worker productivity by its actions. D. is to increase wages in both union and non-union sectors.
Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ________ goods.
A. durable B. nondurable C. essential D. service
Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A. Columbia has a comparative advantage in producing papayas and bananas. B. These countries cannot gain from trading. C. These countries would increase combined consumption if they specialized and traded. D. Columbia has a comparative advantage in producing papayas but not bananas.
What development turned the cable TV market into a contestable one?
A. Economies of scale. B. Satellite and broadband technology. C. Cable TV firms were earning economic profits. D. Cable TV firms raised prices.