One of Keynes’ most profound insights was that
a) markets allocate resources efficiently, as if by an invisible hand
b) comparative advantage allows all nations to gain from trade
c) capitalists exploit workers by paying them less than the total value of what they produce
d) the same factor that drives long run growth—technological change—also causes business cycles
e) the economy can achieve an equilibrium below its capacity
e) the economy can achieve an equilibrium below its capacity
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Exchange rates are an effective way to analyze the price of one currency in terms of another currency with ________.
a. distinctive trade-offs and risks b. exchange rate policy c. monetary policy d. the tools of demand and supply
Economic growth and development in LDCs are low because many of them lack:
a. saving. b. infrastructure. c. a political environment favorable to growth. d. All of the answers are correct.
The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Running a negative campaign is ________ for the ________ candidate.
A. neither a dominant nor dominated strategy; Republican B. a dominated strategy; Republican C. a dominant strategy; Democratic D. a dominated strategy; Democratic
Which of the following is a shortcoming of GDP?
A. GDP measures used goods and services. B. GDP includes changes in inventories. C. GDP includes the value of net exports. D. GDP does not make an allowance for leisure time.