It is _____ that in the classical model, prices and wages are fixed; it is _____ that according to the classical economists, full employment is the norm.
A. true; true
B. false; false
C. false; true
D. true; false
C. false; true
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As economies are predictable, economic risk presents executives with very few challenges.
Indicate whether the statement is true or false.
A trade-off refers to:
A. allowing the government and other organizations to choose for us. B. sacrificing one thing for another. C. deciding who consumes the products produced in an economy. D. holding other variables fixed.
The ability to exercise control over one's own resources within the confines of the law refers to
A) the free market. B) one's property rights. C) entrepreneurship. D) having an absolute advantage.
During a business cycle recession, it is very likely that real GDP will
A) be greater than potential GDP. B) be less than potential GDP. C) equal nominal GDP and equal potential GDP. D) exceed nominal GDP. E) equal nominal GDP but not equal potential GDP.