Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization.
b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate.
c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index.
d. In the classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index.
e. All of the above are true.
.D
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According to the textbook, why didn't the U.S. government mount chronic budget deficits before 1970?
A) Elected officials didn't know how to use the federal budget as a policy tool. B) Deficits were viewed as an irresponsible moral failure on the part of government. C) The U.S. had a constitutional balanced budget amendment. D) For all of the above reasons. E) For none of the above reasons.
In a graph with output on the horizontal axis and total revenue on the vertical axis, what is the shape of the total revenue curve for a perfectly competitive seller?
A) a ray from the origin B) inverted U-shaped C) U-shaped D) a horizontal line
Refer to the payoff matrix above. Which of the following is the iterated elimination of dominated strategies outcome of the game?
A) Middle/High
B) High/High
C) Low/High
D) Low/Middle
Which of the following is often referred to as the basic postulate of economics?
a. Individuals act only out of selfish motives. b. Incentives matter; individuals respond in predictable ways to changes in personal costs and benefits. c. The accuracy of the assumptions is the best test of an economic theory. d. The value of a good is objective; it is equal to the cost of pro