The second crisis of economic theory refers to
A. The dominance of Keynesian views in fiscal policy to the exclusion of newer, more enlightened viewpoints.
B. The typical fiscal policy trade-off between unemployment and inflation.
C. An emphasis on the level of output without concern for the content of output in terms of fiscal policy.
D. Our inability to maintain full employment output over any significant period of time.
Answer: C
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When government levies pollution taxes on sellers to eliminate the inefficiency from the cost of pollution, the result is
A) a lower price. B) a smaller quantity produced. C) a smaller cost of production. D) a rightward shift of the supply curve. E) leftward shifts of the supply and demand curves.
Other things remaining the same, which of the following is likely to happen if all homemakers in an economy start working as paid labor?
A) There will be a fall in both the wage rate and the employment level. B) There will be an increase in both the wage rate and the employment level. C) There will be an increase in the wage rate in the country and a fall in the employment level. D) There will be a fall in the wage rate in the country and an increase in the employment level.
The fact that some resource prices are fixed by contracts help explain why firms:
What will be an ideal response?
Suppose compensation is given by W = 512,000 + 217? + 10.08S, where W = total compensation of the CEO, ? = company profits (in millions) = $200, and S = sales (in millions) = $400. How much will this CEO be compensated?
A. $512,000 B. $812,431 C. $43,400 D. $559,432