Liquidity preference refers to
A) Keynes' name for the demand for money.
B) the "random walk" behavior of consumption spending.
C) monetarists explanations for stagflation.
D) real business cycle theorists' explanations for stagflation.
E) the controversy sparked by the Lucas critique.
A
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If production of a good creates beneficial externalities, a perfectly competitive market will produce
a. less output than would maximize profit. b. more output than would maximize profit. c. less output than is socially efficient. d. more output than is socially efficient.
Suppose Country A has a closed economy. If Country A's GDP remains constant, but its consumption and government spending increase, then: a. Country A's national saving will decrease. b. Country A's national saving will increase. c. Country A's net taxes will increase
d. Country A's net taxes will decrease.
Total revenue is:
A. price multiplied by quantity of each item sold. B. price multiplied by quantity subtracted from total cost. C. cost multiplied by quantity of each item produced. D. None of these is true.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.