According to the New Classical macroeconomic school,
A) active policy intervention is ineffective.
B) active policy intervention is undesirable and perverse.
C) active policy intervention's benefits exceed its costs.
D) active policy intervention's benefits are less than its costs.
A
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Assume that average labor productivity is the same in each country. Based on the information in the table, which country has the smallest real GDP per capita?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. Country B B. Country D C. Country A D. Country E
Refer to Figure 2.1. At point E, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
The Nash equilibrium in a Bertrand game in which firms produce perfect substitutes and have equal marginal costs is:
a. efficient because all mutually beneficial transactions will occur. b. efficient because of the free entry assumption. c. inefficient because some mutually beneficial transactions will be foregone. d. inefficient because of the uncertainties inherent in the game.
Economies of scale imply that within some range one can increase the size of operation and:
a. total cost will decrease. b. fixed cost will decrease. c. average total cost will decrease. d. average total cost will increase. e. average variable cost will decrease.