Willis knows that the price of real estate in his city will rise significantly in a few years because many multi-national companies are setting up new offices. He decides to invest a major portion of his income in buying real estate now. This is an example of _____
a. absolute advantage
b. rational expectations
c. adaptive expectations
d. sticky wages
b
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Refer to the above table. What does the marginal physical product equal when the amount of labor goes from 12 to 13 units?
A) 58.5 B) 70 C) 690 D) 760
The sum of the explicit and implicit costs incurred in the production process is called:
a. fixed cost. b. sunk cost. c. marginal cost. d. total cost.
Keynesians:
a. accept the countercyclical policy of doing nothing, that is, allowing market forces to work. b. believe that the level of aggregate demand in the 1930s was sufficient to generate full employment. c. accept the fact that policymakers should eliminate inflation first before focusing on unemployment. d. focus on increasing aggregate demand in order to stimulate the economy. e. were prepared for the events that beset our economy in the 1970s and 1980s.
If the price of monthly satellite TV service increases from $40 to $50, the percentage change is:
A. 5 percent. B. 20 percent. C. 25 percent. D. 45 percent.