A Keynesian economist believes that
A) if the economy was left alone, it would rarely operate at full employment.
B) the economy is self-regulating and always at full employment.
C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic.
D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
A
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If a game contains private information, then
A) the game's outcome is affected. B) firms will engage in cheap talk to coordinate their actions. C) players will decide not to play the game. D) third-party negotiations are necessary to resolve the information gap.
An individual who drives a car without a muffler in an attempt to increase fuel economy is creating
a. a positive externality b. a public good c. a negative externality d. a winner's curse e. vertical inequity
Consumer spending accounts for what share of GDP?
a. 20% b. 40% c. 70% d. 90%
The benefit to buyers of participating in a market is measured by
a. consumer surplus. b. producer surplus. c. total surplus. d. deadweight loss.