The classical economists believed in all of the following EXCEPT
A. wages and prices are flexible downward.
B. insufficient aggregate demand could keep an economy in a depression for an extended period of time.
C. recessions were temporary because the economy is self-correcting.
D. laissez faire was the best policy a government could pursue.
B. insufficient aggregate demand could keep an economy in a depression for an extended period of time.
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One way DeBeers managed to maintain control over the diamond industry was to:
A. continue to be the sole diamond producer by buying all existing diamonds. B. create the illusion of no close substitutes through marketing. C. punish consumers who sought to store their wealth in diamonds. D. All of these statements are true.
Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers
a. True b. False Indicate whether the statement is true or false
Which countries suffered from too much debt and were forced to ask for monetary help from international organizations?
a. Greece b. United Kingdom c. Ireland d. Both A and C suffered from debt and received aid.
The invisible hand is closely related to each of the following, except
A. supply and demand. B. the price mechanism. C. competition. D. fairness or equity.