Prior to the Great Depression, most economists believed that a recessionary downturn would be reversed by
a. higher wages that would stimulate aggregate demand and reduce unemployment.
b. lower wages that would increase the quantity of labor demanded and reduce unemployment.
c. an expansionary monetary policy on the part of the Federal Reserve System.
d. an increase in government spending that would stimulate aggregate demand and employment.
B
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Concentration ratios are generally computed for ________ markets
A) local B) regional C) national D) global
It is difficult to create barriers to entry if the information content of a product can be separated from the physical aspects of the product
Indicate whether the statement is true or false
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.
College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed
macaroni and cheese are: A. inferior goods. B. normal goods. C. complementary goods. D. substitute goods.