An economy in which individual people and firms pursue their own self-interest without any central direction or regulation is a(n)
A. invisible-hand economy.
B. private-sector economy.
C. command economy.
D. laissez-faire economy.
Answer: D
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John Maynard Keynes developed the aggregate expenditures model in order to understand the
A. Great Depression. B. Great Recession of 2007-2009. C. Second World War. D. oil crises of the 1970s and 1980s.
The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring
A) 800 hours of labor at a wage of $5 per hour. B) 600 hours of labor at a wage of $10 per hour. C) 400 hours of labor at a wage of $5 per hour. D) 200 hours of labor at a wage of $5 per hour.
People cope with uncertainty about the future:
A. exactly the same way, regardless of the situation. B. in very similar ways, regardless of the situation. C. in many ways, such as buying insurance. D. by always avoiding it.
As an In-N-Out Burger restaurant increases the number of employees for a specific restaurant,
A. The production function will increase. B. Costs of production will fall. C. Efficiency will suffer as the restaurant becomes too crowded with employees. D. Total production of hamburgers will fall.