Classical economics refers to the perspective that the business cycle can be explained
A) using equilibrium analysis.
B) using disequilibrium analysis.
C) by long-run macroeconomic fluctuations.
D) by short-run macroeconomic instability.
A
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The price elasticity of demand is -1.5. The price elasticity of supply is 1.5. The fraction of a specific tax that is borne by producers is ________
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1
We know that industrial countries tend to trade with other industrial countries. This pattern counters the:
a. preference theory of comparative advantage. b. factor abundance theory of comparative advantage. c. concept of intraindustry trade. d. product life cycle theory of comparative advantage. e. human skills theory of comparative advantage.
You hire a set of economic consultants and they tell you the following: At a price of $7, 24 units of the good could be sold; at a price of $6, 29 units of output could be sold. You know then that the firm's total revenue at a price of $7 would equal
a. $174 b. $14 c. $6 d. $168 e. $342
An example of discretionary fiscal policy would be
A. the existence of the progressive federal income tax. B. an interest rate cut implemented to stimulate consumption. C. the existence of the welfare state. D. a federal jobs program adopted to stimulate consumption.