The critical issue of macro instability, when there is no government intervention and no foreign trade, is whether
A. Investment and consumption will exceed disposable income.
B. Savings and taxes will be equal.
C. spending injections will equal spending leakage at full employment.
D. Consumption and savings lead to the ideal interest rate.
Answer: C
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Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that a below-equilibrium price established by rent control:
a. creates a surplus of rental housing. b. promotes a rapid increase in the future supply of housing. c. results in poor service and quality deterioration of many rental units. d. leads to a reduction in housing discrimination against minorities.
What is a patent?
What will be an ideal response?
Ralph Nader has long argued that large corporations in oligopolistic markets should use their vast productive powers to redress social ills. Implementing this policy may put companies:
A. in conflict with its trade unions. B. in conflict with their international policies. C. in conflict with the government. D. in conflict with the process of wealth maximization.
The above figure shows the demand and cost curves for a firm in monopolistic competition. In the figure, the firm makes an economic profit of
A) $0. B) $20. C) $40. D) $120.