How is the value of a good determined?
What will be an ideal response?
It depends on many factors, including who uses it and under what circumstances.
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How does the original, simplified Keynesian model compare with modern Keynesian analysis?
A) The original Keynesian model assumed price flexibility whereas the modern analysis does not. B) In both cases, the short-run aggregate supply curve (SRAS) is horizontal. C) Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices. D) all of the above
Which of the following was a result of the many programs introduced as part of the New Deal?
a. a business environment of uncertainty that reduced output and investment b. a speeding up of the economic recovery process once these programs were enacted c. an increase in trade, investment, and output within the business sector d. a steady decline in the unemployment rate
(Consider This) According to The Economist magazine, growing income inequality is less of a concern because:
A. it is increasing at a decreasing rate. B. the poor have increasingly better access to goods and services once only available to the rich. C. poverty rates have fallen below 10 percent. D. government transfers eliminate virtually all consumption inequality.
Refer to the figure above. If a price control is imposed at $8, what is the new producer surplus in the market?
A) $20 B) $40 C) $60 D) $80