The classical theory of employment held that
A. total consumption would always equal total saving.
B. the savings of wealthy households would be borrowed and spent on consumer goods by poor households.
C. investment might either be less than, or greater than, saving.
D. the savings of households would all be borrowed and invested by businesses.
D. the savings of households would all be borrowed and invested by businesses.
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Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?
A) "Let's make this product because this is what we know how to do best." B) "We should consider shifting to products where we can earn even more money." C) "Everyone is opening video stores, why don't we?" D) "We can't stop making this product. This product gave our company its start."
Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?
a. Tit-for-tat b. Win-win c. Last in-first out d. Second best
Suppose a fishing boat reaches its most productive use of each person's talent with 15 crew members. More than 15 workers would cause overcrowding. If there are only 10 crew members currently on the boat, adding one more crew member will
a. require the owner to add another boat b. increase the level of labor productivity c. have no effect on labor productivity d. reduce the need for other variable inputs such as fuel e. reduce the total variable cost of operating the fishing boat
Many economists believe a general sales tax (particularly on items such as food) takes a larger proportion of income from low-income households than from high-income households. If this is true, a general sales tax is a
a. regressive tax. b. proportional tax. c. neutral tax. d. progressive tax.