Which of the following is false?
A. Keynes believed that the economy was basically unstable.
B. The classical economists believed that full employment was a "rare occurrence".
C. Keynes argued that the expected rate of profit was the most important factor in determining the level of investment demand in an economy.
D. The classical economists used the laws of supply and demand to prove the validity of Say's Law.
B. The classical economists believed that full employment was a "rare occurrence".
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GDP and GNP may differ
A) because some income generated by domestic production may be received as income by foreign residents. B) because some intermediate good inputs are imported. C) because some workers are illegal aliens. D) whenever tariff rates become excessively high.
A _____ is when no one outcome can defeat all others by majority rule
a. cyclical majority b. single-peaked preference c. political business cycle d. political institution
Among the evidence that people do not always make choices that reflect sensible preferences are examples of:
A. choice reversals. B. conformance to the principle of revealed preference. C. compliance with the Ranking Principle. D. All of these provide evidence that people do not always make choices that reflect sensible preferences.
Half of all your potential customers would pay $16 for your product but the other half would only pay $10 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $10, the expected profit is:
a. $3 b. $4 c. $5 d. $6