The belief that interest rates are the critical policy lever is associated with
A. Monetarists.
B. New classical economists.
C. Supply-siders.
D. Modern Keynesians.
Answer: D
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Which of the following statements about a monopolist is TRUE?
A) Monopolies tend to misallocate resources. B) All monopolies are unlawful in the United States. C) Monopolies tend to allocate resources in a socially optimal manner. D) Monopolies will always make a profit in the long run.
Say's Law
a. is valid only in a simple economy without financial markets b. led economists during the 1920s to encourage the government to adopt flawed economic policies that led to the Great Depression c. assures us that in the aggregate, firms are able to sell their output so that full employment can be sustained d. tells us that in the long run, markets clear e. tell us that firms must carefully monitor consumer spending and saving in order not to produce more than consumers are willing to purchase
_____________ advantage can be the result of a country’s natural endowment.
a. Absolute b. Real c. Focused d. Micro
At a product's equilibrium price
A) anyone who needs the product will be able to buy the product, regardless of ability to pay. B) the federal government will provide the product to anyone who cannot afford it. C) not all sellers who are willing to accept the price will find buyers for their products. D) any buyer who is willing and able to pay the price will find a seller for the product.