The popular theory prior to the Great Depression that the economy will automatically adjust to achieve full employment in the long run is:
a. supply-side economics.
b. Keynesian economics.
c. classical economics.
d. mercantilism
c
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If France has a trade deficit, then
A) imports into France exceed exports from France. B) exports from France exceed imports into France. C) imports into the United States from France exceed exports from the United States into France. D) imports into France from the United States exceed exports from France into the United States.
The short-run aggregate supply curve slopes
a. downward because firms can sell more, and hence, will produce more when prices are lower b. downward because firms find it costs less to purchase labor and other inputs when price are lower, and hence they produce more c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales d. upward because firms find it cots more to purchase labor and other inputs when prices are higher, and hence they must produce and sell more in order to make a profit
Holding everything else constant, a country's imports will decrease if the:
A) country's currency appreciates. B) country's currency depreciates. C) country's currency is revalued. D) none of the above.
A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing. b. The surgeon should do her own typing to save money. c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.