Economists are sharply divided over how to best fight the Great Recession. A vocal minority of economists favor the "Structural Solution," arguing that the economy needs to undergo some structural adjustments and
A.
Relying on the invisible hand of the market to reallocate resources, by letting weak firms die out quickly
B.
Government taking serious actions to increase the total demand for output in the economy
C.
Fixing prices so that consumers can afford the basic stuff they need, and also to control inflation
D.
Setting up social programs and welfare structures, to help out those who are suffering most from the recession
A.
Relying on the invisible hand of the market to reallocate resources, by letting weak firms die out quickly
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If the price is greater than the marginal cost of producing a good, the seller has
A) no benefit from the sale. B) a loss. C) some producer surplus from the sale. D) some negative consumer surplus from the sale. E) None of the above answers is correct.
Which of the following is true of the General Agreement on Tariffs and Trade (GATT)?
a. It is now called the World Agreement on Trade and Tariffs. b. It was the global trade agreement that did away with the gold standard. c. It was a policy of the United States to raise tariffs on imported sugar. d. It was the first global trade agreement that followed World War II. e. It was a global trade agreement to raise tariffs.
If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is:
A. 0.25. B. 4. C. 15. D. 100.
In the above figure, if the market price is $10, the firm
A. shuts down operations. B. produces 10 units. C. produces 12 units. D. produces 11 units.