Which of the following is a building block of neoclassical economics?
a. the size of the economy is determined by real GDP
b. sticky wages and prices
c. menu costs
d. wages and prices will adjust in a flexible manner
d. wages and prices will adjust in a flexible manner
You might also like to view...
Value is
A) the price we pay for a good. B) the cost of resources used to produce a good. C) objective so that it is determined by market forces, not preferences. D) the marginal benefit we get from consuming another unit of a good or service. E) the difference between the price paid for a good and the marginal cost of producing that unit of the good.
The Herfindahl-Hirschman Index is calculated by ________
A) adding the market share of each firm in the market and squaring the resulting number B) squaring the market share of each firm competing in the market and then summing the resulting numbers C) adding the number of firms in the market and squaring the resulting number D) adding the profit earned by each firm in the market
When marginal product is less than average product,
a. average product falls. b. average product is zero. c. average product increases. d. average product is unaffected.
In a command economy
a. a dictator makes every economic decision b. owners can sell their resources to the highest bidder c. no individual or group coordinates the economy d. in theory, individual choices are reflected in collective decisions, and decisions are made by central planners e. public ownership of resources is combined with free markets to direct economic activity