John Maynard Keynes and Friedrich Hayek
a. had similar views with regard to the cause of the Great Depression and what might be done to prevent it from happening again.
b. both believed that perverse monetary policy was the primary cause of the ups and downs of the business cycle.
c. both believed that budget deficits and surpluses could be used to smooth the ups and downs of the business cycle.
d. had polar opposite views with regard to the underlying causes of economic booms and bust, but nonetheless their scholarly work commanded widespread respect among economists.
D
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In the above figure, the shift in the supply curve from S to S2 reflects
A) an increase in the supply of pizza. B) an increase in the quantity of pizza supplied. C) a decrease in the quantity of pizza supplied. D) a decrease in the supply of pizza. E) a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.
Which of the following was NOT true when Katharine McCormick was born in 1875?
A. Very few women went to college B. Birth control was illegal C. Women couldn't vote D. Women were not allowed to own property
Which of the following is an assumption used by Classical economists?
A. Wages adjust upward but not downward. B. Wages are inflexible. C. Wages adjust downward but not upward. D. Wages adjust both upward and downward.
Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.Refer to Scenario 9.8. Total revenue per week is
A. $6,000. B. $7,200. C. $8,100. D. $9,500.