Keynesian economists would likely argue that the classical model is which of the following?
A. a sticky price theory
B. a short-run theory
C. both a long-run and short-run theory
D. a long-run theory
Answer: D
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Suppose the world price of a shirt is $10. If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the
A) world rises to $5. B) United States rises to $15. C) United States falls to $5. D) world rises to $15 E) world falls to $5.
In the scenario above, as a result of increased advertising, Talbot's economic profit
A) decreases by $500. B) increases by $170. C) increases by $750. D) decreases by $100.
Answer the following statements true (T) or false (F)
1) Each time a manager changes the conditions of a sale, they must consider the problem of adverse selection. 2) The lemons problem is an extreme case of moral hazard. 3) A well-known company's trademark is an example of a signal. 4) In general, moral hazard occurs at the time of the transaction and adverse selection occurs after the participants have already entered into the contract or agreement. 5) The incentive for a cost-plus-award-fee contract are less specific than a cost-plus-incentive-fee contract.
If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of
a. beef b. cocoa c. coffee d. capital goods e. soybeans