An economy in which people exchange goods and services in a market is called a
A) command economy. B) socialist economy.
C) market economy. D) centrally planned economy.
C
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One way to assure that poor people will have a plentiful supply of affordable housing available to them is by imposing rent ceilings
Indicate whether the statement is true or false
The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the
A) accelerator hypothesis of net investment. B) permanent-income hypothesis. C) life cycle hypothesis. D) adaptive expectations approach.
The Keynesian explanation of the Great Depression focuses on
a. large rises in government spending. b. large increases in taxes c. large increases in planned investment. d. an increase in expectations.
All economic models must involve simplifications because
a. economists would be unable to command high salaries if their models were so simple that anyone could understand them b. human behavior is very erratic and unpredictable c. reality is too complex to understand in its entirety, so we must reduce it to a level that we can understand d. they always try to duplicate all possible information and cover all possible variables that might influence decision making e. we must rely on value judgments and ignore reality