If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services.
B. The government should increase taxes to balance its budget during a recession.
C. Businesses should decrease spending on new equipment until the economy improves.
D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
Answer: A
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Refer to the scenario above. If Maria borrows her parents' car and pays for only the gasoline, what is her total cost of driving to destination A?
A) $90 B) $250 C) $300 D) $340
A "search good" is:
a. One that depends on how the product behaves over time b. A product whose quality is only found out over time by finding how durable it is c. Like a peach that can be examined for flaws d. Like a used car, since it is easy to determine its inherent quality e. None of the above
Which of the following statements about a firm, which is a price taker is false?
(a) The firm will sell its product at the market price. (b) The demand for firm's product will increase, if price is increased above the market price. (c) The demand for firm's product will decrease, if price is increased above the market price. (d) None of the above.
One In the News feature reports that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Omaha Power planned to close one of its nuclear plants permanently. Based on these particular news clips, what is the difference between GM's and Omaha Power's decisions?
A. Omaha Power was trying to get rid of excess inventory, and GM was trying to become more efficient. B. There is no difference between GM's and Omaha Power's decisions; both were trying to get rid of excess inventory. C. GM was trying to maximize profits while Omaha Power was trying to minimize losses. D. GM's decision to idle plants was a short-run shutdown decision. Omaha Power, by contrast, made a long-run decision to exit a specific market.