In a perfectly competitive market, a decrease in output could be caused by
a. an increase in consumer demand
b. a technological innovation
c. a decrease in input prices
d. a decrease in consumer demand
D
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The theory of monopolistic competition was developed in two separate models by
A) Adam Smith and David Ricardo. B) John Kenneth Galbraith and John Maynard Keynes. C) Edward Chamberlin and Joan Robinson. D) Roger Leroy Miller and Paul Samuelson.
Brandon, an economist, is a believer of the rational expectations school. According to him, which of the following is likely to affect the levels of output and employment in an economy?
a. An expansionary monetary policy, if it is fully anticipated b. A recessionary monetary policy, if it is fully anticipated c. A monetary policy that is unanticipated d. A fiscal policy that is anticipated e. The Fed's announcement of no change in monetary policy
The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues
a. True b. False Indicate whether the statement is true or false
Which best describes the "invisible hand" concept?
a. Sufficiently detailed central direction of an economy will maximize the public's best interests b. The desires of producers and resource suppliers to further their own self-interest will automatically promote the social interest c. The market system works best when resources are highly substitutable d. The problem of scarcity can best be overcome in a system