Classical economists held the view that in the economy:
A. Demand creates its own supply
B. Unemployment is temporary and is soon eliminated
C. There is an imbalance between saving and investment
D. It is difficult for an economy to adjust because wages and prices are inflexible
B. Unemployment is temporary and is soon eliminated
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Identify the six basic requirements that economists generally agree must exist for a successful transition from socialism to a market-based system
What will be an ideal response?
Refer to Figure 7.1. At output level Q3
A) average fixed cost reaches its minimum. B) average total cost reaches its minimum. C) average variable cost reaches its minimum. D) marginal cost reaches its minimum. E) all of the above
Which scenario best exemplifies how money functions as a means of exchange?
a. Marcus makes a payment on his mortgage every month. b. Indu knows that a stamp is $0.50 and a soda is $2, so a soda has the same value as four stamps. c. Stefie gives Dan $8 and receives a new paperback novel in return. d. Each month, a portion of Yolanda’s paycheck is deposited into a retirement account.
Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?
A. an increase in the productivity of workers B. an increase in the wage rate C. a decrease in the price of the product D. an increase in demand for the product