In the Keynesian model, firms are best characterized as

A) perfectly competitive.
B) irrational.
C) price takers.
D) monopolistically competitive.


D

Economics

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In the market for jeans, which of the following events increases the de-mand for a pair of jeans?

A. The wage rate paid to garment workers rises. B. The price of a denim skirt (a substitute for jeans) rises. C. The price of denim cloth falls. D. New technology reduces the time it takes to make a pair of jeans.

Economics

Nancy is considering forming a 5 year business partnership with Claudia. Nancy believes her portion of the partnership will generate the following profits:

Year Profits Present Value 1 $2,000 2 $4,000 3 $12,000 4 $15,000 5 $18,000 Nancy's appropriate discount rate is 6%. To join the partnership, Nancy needs to invest $30,000. Does the partnership offer a rate of return in excess of 6%?

Economics

Which of the following statements is false?

a. Round stones with holes in the center can serve as money. b. Money eases the process of exchanging goods and services in a modern economy. c. Money serves as a measure of value only when it is backed by gold or silver. d. Money is used as a measure of the relative value of goods and services in an economy.

Economics

Constant returns to scale cause the long-run average cost curve to be:

A. horizontal. B. vertical. C. upward-sloping. D. downward-sloping.

Economics