Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
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According to ________, entrepreneurship does not contribute anything of value to production
A) Milton Friedman B) Karl Marx C) Robert Lucas and Thomas Sargent D) John Maynard Keynes
A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is
a. a patent b. in conflict with the Constitution c. supported by laissez-faire advocates d. impossible to enforce e. an antitrust law
The theory of consumer choice examines how
a. firms make profit-maximizing decisions. b. consumers make utility-maximizing decisions. c. wages are determined in competitive labor markets. d. prices are determined in competitive goods markets.
Which theory does NOT support unrestricted free trade between countries
What will be an ideal response?