The classical model is a model in which
a. governmental policies are needed to ensure full employment.
b. wages and prices are perfectly flexible.
c. the public has perfect information.
d. None of the above
e. b and c
E
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Behaving strategically means:
A. evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. B. acting to achieve a goal by anticipating the interplay between your own and others' decisions. C. acting to achieve a goal by withholding key information from the person with whom an exchange is being made. D. evaluating the impact of your choices on an uninvolved third party.
When economists describe a production process as capital-intensive, they mean that the
A. Process needs a greater emphasis on labor in order to increase productivity. B. Capital used in the process tends to wear out (depreciate) very rapidly. C. Capital used in the process reflects the most advanced technology. D. Process uses a high ratio of machinery and other capital to labor.
Examine Figure 37.1. What is the number of students educated in a market that has no subsidy? 
Figure 37.1
A. S* B. S' C. All who have any desire for it D. The answer is unknown from this diagram.
Kris wants to purchase a house. She buys newspapers to read the classified advertisements and spends her evenings with realtors looking at houses. Kris has incurred the ________ costs of making a purchase
A) transactions B) market C) buying D) scale