Classical economics was based upon the belief that
A. government intervention was essential for economic stability.
B. aggregate demand (or aggregate expenditures) was the principal force controlling income and employment.
C. a redistribution of wealth from the rich to the poor was necessary to prevent the evolution of a welfare state.
D. full employment was the natural state of the economy and that government should not interfere with the private market forces of supply and demand.
D. full employment was the natural state of the economy and that government should not interfere with the private market forces of supply and demand.
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The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2010, the base year, the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each. In 2015, the typical consumer purchased 15 books for $30 each and 30 hamburgers for $3 each. The consumer price index for 2015 on Planet Econ equals:
A. 1.45 B. 1.00 C. 1.25 D. 1.15
Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good ________
A) is diminishing B) is maximized C) is the same D) is increasing
The Long-run average total cost:
A. will rise if there are economies of scale B. assumes all inputs are variable C. will fall under the assumption of diseconomies of scale D. will be a flat line if there are economies of scale
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how many minutes will each customer buy each month?
A. 200 B. 150 C. 175 D. 250