John Maynard Keynes, author of The General Theory of Employment, Interest, and Money, argued that
a. classical economic theory was correct
b. the government should follow a policy of laissez faire
c. the critiques of classical economics were flawed
d. the economy does not always perform well in the absence of government guidance
e. instead of focusing on money, the government should control interest rates
D
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Which of the following is true about an individual's choice of insurance assuming state-independent tastes?
A. Full insurance will be chosen from a full menu of actuarily fair insurance if tastes are risk averse. B. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk averse. C. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk-neutral. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above
In the opinion of many consumers, there are few, if any, substitutes for the popular search engine Google. If Google were to charge consumers for its services, it would face:
a. a relatively inelastic demand curve. b. a relatively elastic demand curve. c. a negative income elasticity of demand. d. a positive cross elasticity of demand. e. a perfectly elastic demand curve.
The tax multiplier is smaller than the income multiplier
Indicate whether the statement is true or false
How can supply and demand analysis be used to explain the equilibrium price and quantity of exports and imports for aluminum when there is trade between two nations (e.g., the United States and Canada)?
What will be an ideal response?