Neoclassical economics does not hold which of the following assumptions?
A. People are fundamentally rational
B. People can make errors initially, but they learn quickly
C. People's errors are random and rare
D. People make regularly-repeated mistakes
D. People make regularly-repeated mistakes
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The U.S. economy is relatively open in terms of economic activity related to international trade.
Answer the following statement true (T) or false (F)
In order to reduce labor supply, a union must be able to
a. do all of the following b. force all employers in the industry to hire only union members c. set wages d. agree to wage concessions e. increase union membership
Ceteris paribus, based on the circular flow model, a spending injection results in:
A. A decrease in total income for consumers. B. An increase in total income for consumers. C. An increase in the MPS. D. A decrease in the MPS.
Given that two countries (A and B) each specialize in the production of one good and voluntarily trade it for the other country's good, then:
A) only country A experiences positive gains from trade. B) only country B experiences positive gains from trade. C) both countries experience positive gains from trade. D) both countries experience negative gains from trade.