The price system has
A) prices fixed by the government.
B) prices fixed by the seller.
C) voluntary exchange.
D) prices fixed by the producer.
Answer: C
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The classical approach to macroeconomics assumes that
A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets. B) wages and prices adjust quickly to balance quantities supplied and demanded in markets. C) prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets. D) neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.
According to the text, what is not a pre-condition for factory production and industrialization?
a. Standardized parts b. Sufficient power and energy c. Continuous process production d. A sufficiently centralized administrative structure
Jim is haggling with a car dealer, along with another customer, over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. As Jim makes an offer on the car, the other customer leaves the store, and the storekeeper accepts Jim's offer. This is because
a. The storekeeper's disagreement value decreased b. The storekeeper's disagreement value increased c. The storekeeper's disagreement value did not change d. None of the above
Which of the following groups agree that government intervention in the economy is counterproductive even in the short run?
a. Keynesians and supply-siders b. Keynesians and neo-Keynesians c. Keynesians and rational expectations economists d. neo-Keynesians and rational expectations economists e. Rational expectations economists