If there is an exogenous decrease in investment spending, Monetarists argue that there would be little or no effect on real output because the interest rate would __________,
investment would __________, saving would __________, and consumption would __________.
A) decline; increase; increase; decrease
B) decline; increase; decrease; increase
C) rise; decrease; decrease; increase
D) rise; decrease; increase; increase
B
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Unlike an accountant, an economist measures costs on a(n) ________ basis
A) explicit B) replacement C) historical D) conservative
What are the three ways economies are organized?
a. communism, socialism, free b. market, capitalism, mixed c. traditional, command, market d. traditional, market, mixed
Based on the graphs showing price discrimination in movie ticket prices, if the theatre charges $11 per ticket at the evening show, it will ______.
a. maximize profits
b. sell too many tickets
c. sell too few tickets
d. sell no tickets
When you hire a company to paint your house, you cannot be sure of the quality of paint that was used. This situation is an example of
a. moral hazard. b. the adverse selection problem. c. the market for lemons. d. the principal-agent problem.