Which of the following is false?
A. The classical economists believed that the economy was basically stable.
B. Keynes believed that full employment was a "rare occurrence".
C. Keynes argued that the interest rate was the most important factor in determining the level of investment demand in an economy.
D. The classical economists used the laws of supply and demand to prove the validity of Say's law.
C. Keynes argued that the interest rate was the most important factor in determining the level of investment demand in an economy.
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What is the main shortcoming of the Big Mac Index?
What will be an ideal response?
According to economists, national defense can be supported through taxation because
A) national security generates no benefits for which any one would be willing to pay. B) people are insufficiently patriotic. C) taxation makes everyone pay in proportion to the benefits they receive. D) the people who refuse to pay the cost cannot easily be excluded from the benefits. E) we must choose between coercion through taxation and coercion through a draft.
Consumer finance companies, because of the __________-term nature of their liabilities, prefer to hold __________-term assets
A) long; long B) long; short C) short; long D) short; short
Which of the following is the first step when economists analyze how individuals make choices?
a. Considering what choices are possible for individuals b. Thinking about which choices individuals actually make c. Considering what choices individuals might prefer d. Considering which choices might provide maximum utility