According to John Maynard Keynes, government should:
a. attempt to set wages and prices when necessary to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.
b. not attempt to set prices and wages throughout the economy, nor take over and manage large corporations or entire industries directly to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.
c. manage large corporations and industries when necessary to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.
d. attempt to set prices and wages throughout the economy or take over and manage large corporations or entire industries directly to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.
b. not attempt to set prices and wages throughout the economy, nor take over and manage large corporations or entire industries directly to ensure that overall level of aggregate demand is sufficient for an economy to reach full employment.
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Which of the following characterizes a perfectly competitive market?
A) The market demand curve is vertical. B) The demand for each individual firm's product is perfectly elastic. C) Each firm sets a different price. D) Each firm produces a product slightly different from that of its competitors.
If the United States follows an expansionary monetary policy relative to Japan and Germany, which of the following is not likely to occur?
A) U.S. interest rates will rise relative to Japan and Germany B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income
When the Lorenz curve moves closer to the diagonal, this shows:
a. the rich getting richer and the poor getting poorer. b. total income is rising. c. the distribution of income is becoming more even. d. the population is decreasing. e. the prices of goods are rising.
Studies show that business executives are generally more dishonest than the average professional
Indicate whether the statement is true or false