The popular and dominant school of economists in the 1930s who could not explain why the economy went into a depression were the:
A. Classical School.
B. Austrian School.
C. Mercantilists.
D. Ricardians.
A. Classical School.
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Refer to above Table 2-2. The implicit GDP deflator for year 2 is
A) 1.284. B) 1.432. C) 1.101. D) 1.334.
Which of the following is NOT included in aggregate demand?
A) Demand for goods and services for consumption B) Investment in business plant and equipment C) Net exports D) Investment in Treasury bonds
Kayla and Kevin are friends who go together to a used textbook seller who has two copies of the biology book that they both need for their class this semester. The cost to the seller of acquiring the books was $25 each and no other students will need this book. Kayla states that she is willing to pay $40 for the book, while Kevin says he is willing to pay $80. Which of the following describes the most likely conclusion to this scenario?
A. The seller will sell the books to both Kayla and Kevin for $80 each because Kevin's higher value exceeds Kayla's willingness to pay. B. The seller will sell the books to both Kayla and Kevin for $40 each because if they tried to charge Kevin a higher price, Kayla would engage in arbitrage. C. The seller will sell one book to Kayla for $40 and one book to Kevin for $80 because this market meets all three requirements for price discrimination. D. The seller will sell the books to both Kayla and Kevin for $25 each because that is how much the seller paid for the books.
If the supply of labor increases, which of the following events will occur?
A. The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate. B. The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate. C. The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate. D. The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.