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
Answer: C
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The difference between accounting profit and economic profit relates to
a. the manner in which revenues are defined b. how total revenue is calculated c. the market structure for the firm's industry d. the price of the good in the market e. the manner in which costs are defined
The change in total revenue associated with one additional unit of input is referred to as
A. MPP. B. Cost efficiency. C. MRP. D. Elasticity of labor supply.
The macroeconomic policy planner’s job is made difficult because of
A. inaccurate multiplier estimates. B. timing problems. C. disagreements over potential GDP. D. uncertain forecasts. E. All of the above are correct.
Which statement is correct?
A. Because of its ability to administer prices, the pure monopolist can increase its price and increase its volume of sales simultaneously. B. In the short run, the pure monopolist will charge the highest price it can get for its product. C. Pure monopolists do not always realize economic profits. D. In the short run, the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest.