Which of the following is a difference between the theories of John Maynard Keynes and the classical economists?
a. Unlike Keynesian economists, classical economists believed that unemployment was a serious long-term problem.
b. Unlike Keynesian economists, classical economists advocated that the economy was always in equilibrium.
c. Unlike Keynesian economists, classical economists believed that the economy would always settle at full employment.
d. Unlike Keynesian economists, classical economists did not believe that the economy was always in equilibrium.
e. Unlike Keynesian economists, classical economists believed a glut created an unemployment problem for the economy.
c
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If the government regulates the market in the above figure in a way to achieve efficiency, then ________ tons of paper will be produced and consumed
A) 0 B) 100 C) 200 D) None of the above answers is correct.
Because price and quantity demanded are inversely related,
a. the demand curve is usually upward-sloping b. buyers purchase more of the good as the price rises c. the supply curve must be rising d. price and quantity supplied must be positively related e. the demand curve is usually downward-sloping
Refer to the figure below, which shows marginal benefits (MB) and marginal cost (MC) of activity A:
If the decision maker is choosing 400 units of activity A,
A. the activity could be increased by one unit and net benefits will increase by $15. B. this level maximizes net benefits. C. the activity could be reduced by one unit and net benefits will rise by $25. D. the activity could be reduced by one unit and net benefits will increase by $10. E. the activity could be reduced by one unit and net benefits would decrease by $10.
Use the data in the following table for a private closed economy to answer the next question. All figures are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$540$540560555580570600585620600640615660630The MPC and multiplier are, respectively,
A. 0.75 and 1.33. B. 0.80 and 1.25. C. 0.80 and 5. D. 0.75 and 4.