Keynesian economics finds fault with the classical economic argument that wage and price flexibility would guarantee full employment because
A. large unions and businesses resist wage and price cuts and lower wages mean decreased incomes and consumer spending.
B. employment decisions are not influenced by wage rates.
C. investment decisions are made independently of wages and prices.
D. wage and price fluctuations have no bearing on levels of income and employment.
A. large unions and businesses resist wage and price cuts and lower wages mean decreased incomes and consumer spending.
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Which of the following determines comparable worth of a particular job?
a. Cultural background of the applicants b. Gender of the candidates applying for a job c. Race of the applicants for the job d. Level of formal education required for a job e. National origin of the workers in a factory
The MC curve slopes upward due to
A. increasing returns to scale. B. diminishing returns. C. constant returns to scale. D. decreasing returns to scale.
Causality is clear and mechanical with the quantity theory of money. If M increases because:
A. V and Q are variable, the price level, P, increases. B. V and Q are variable, the price level, P, decreases. C. V and Q are constant, the price level, P, increases. D. V and Q are constant, the price level, P, decreases.
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Which of the following is a reason for the state of Virginia to increase its revenue while the price for vanity plates increases?
A. The demand for vanity plates in Virginia is inelastic. B. The demand for vanity plates in Virginia is elastic. C. The demand for vanity plates in Virginia is equal to 1. D. There is insufficient information to draw a conclusion.