Which of the following schools of thought emphasize the role of money supply in determining equilibrium real GDP and price level?
a. Traditional Keynesian economics
b. New Keynesian economics
c. New classical economics
d. Classical economics
e. Monetarist economics
e
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The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent. The supply of lumber is
A) inelastic. B) perfectly elastic. C) perfectly inelastic. D) unit elastic. E) elastic.
For perfect complements, the (uncompensated) demand curve slopes down and the compensated demand (or MWTP) curve is perfectly vertical.
Answer the following statement true (T) or false (F)
Anthony decides to open a café in his garage. He takes the help of his friend, Tess, who agrees to wait on customers for the initial few months. Which of the following is an example of an explicit cost that Anthony could possibly incur?
a. The salary that Anthony could have received by working at a bake house b. The salary that Tess could have received by working at any other café c. The price of ingredients required by Anthony d. The payment that Anthony could have received by renting out his garage to a start up
Refer to the accompanying figure. If Pat and Chris each spend half their time on each task, then:
A. the outcome will be efficient. B. they will plant fewer bulbs and remove fewer bags of trash than if they each had specialized in the task at which they have a comparative advantage. C. they will plant more bulbs and remove fewer bags of trash than if they had each specialized in the task at which they have a comparative advantage. D. the outcome will be unattainable.