According to the principle of marginal productivity, the quantity of an input demanded depends on the
a. price of the input.
b. price of outputs in which the input is used.
c. technology of production.
d. All of the above are correct.
d
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Scarcity is a problem that will eventually disappear as technology advances
Indicate whether the statement is true or false
The price elasticity of demand for gasoline measures the:
a. responsiveness of gasoline producers to changes in the quality of gasoline. b. responsiveness of customers to changes in the price of gasoline. c. responsiveness of consumer preferences to changes in the quality of gasoline. d. both a and c above.
Which of the following is not true of a recession?
a. The economy is overheated. b. Cyclical unemployment is high. c. Unemployment is caused by insufficient spending. d. If the economy is in equilibrium, the aggregate expenditure line is too low to create an intersection at the full-employment level. e. If employers hired more workers to reduce unemployment, they would be unable to sell all the extra output those workers would produce.
Starting with the Great Depression, macroeconomic policies became more influenced by
A. supply-side theories. B. Marxist theories. C. Classical theories. D. Keynes' theories.