The main difference between new classical and new Keynesian theory is with respect to the assumption of
A) how expectations are formed.
B) how flexible wages and prices are.
C) the slope of the SRAS curve.
D) the slope of the AD curve.
B
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The World Trade Organization (WTO) is an international organization dedicated to erecting trade barriers between nations
Indicate whether the statement is true or false
Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because
A) of complications that keep capital goods from flowing to their most efficient use. B) of poor accounting practices when determining real GDP. C) of poor management skill development in companies. D) they facilitate capital goods development.
Some colleges now offer massive open online courses (MOOCs), where students do not need to be in the same classroom as their instructors. The fixed cost of an online course is relatively ________, but after the courses are placed online, the marginal
cost of providing instruction to an additional student is ________. A) high; low B) high; high C) low; low D) low; high
In 1984, the National Minimum Drinking Age Act was passed, raising the legal age to consume alcoholic beverages in the United States to 21. In much of Europe, the legal age to consume alcohol is 18. If the legal drinking age in the United States was
changed back to 18, how would this affect the market for alcoholic beverages? What would happen to the equilibrium price and quantity of alcoholic beverages? What will be an ideal response?