Self-adjustment of markets is assumed in:
A. Classical economic theory.
B. Keynesian theory.
C. Supply-side economic theory.
D. The eclectic viewpoint.
A. Classical economic theory.
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Because resources are scarce, all choices involve trade-offs, which means nothing is free
Indicate whether the statement is true or false.
In the above figure, if the real interest rate is 4 percent, then there
A) there is a surplus of loanable funds. B) is equilibrium in the loanable funds market. C) the real interest rate will rise. D) the demand curve for loanable funds will shift rightward.
A good that has the characteristics of nonexclusivity and nonrivalry is a
a. public good b. merit good c. social good d. private good e. collective good
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service
a. True b. False Indicate whether the statement is true or false