Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of
A) classical economists.
B) Keynesian economists.
C) economists who contend that money illusion never occurs.
D) economists who conclude that wages and prices are very flexible.
B
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In case of an increase in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the quantity effect dominates the price effect, total revenue is rising. D) when the quantity effect dominates the price effect, total revenue is falling.
Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change
What will be an ideal response?
A consumer is a lender if
A) optimum current consumption is less than current disposable income. B) optimum current consumption is greater than current disposable income. C) current disposable income is greater than future disposable income. D) the consumer's indifference curves are relatively flat.
A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which
A) must be positive. B) must be either zero or positive. C) can be positive, negative, or zero. D) exist at the point at which price equals total cost.