The classical economists attacked the mercantilist propositions that
a. state action was necessary to direct the capitalist system.
b. money had no intrinsic value.
c. output was completely supply-determined.
d. the wealth of a nation was closely linked to the country's stock of precious metals.
e. Both a and d
E
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If the supply curve and the demand curve both shift to the left, then the new equilibrium:
A. price will be lower, but the direction of the change in quantity is uncertain. B. quantity will be higher, but the direction of the price change is uncertain. C. price will be higher, but the direction of the change in quantity is uncertain. D. quantity will be lower, but the direction of the price change is uncertain.
Of the more than 9,000 banks in the country,
a. all are chartered nationally b. all are members of the Federal Reserve System c. all the state-chartered members are members of the Federal Reserve System d. none of them are chartered nationally e. fewer than 5,000 are chartered nationally; the rest remain state-chartered
The industry elasticity of demand for gadgets is ?2, while the elasticity of demand for an individual gadget manufacturer's product is ?2. Based on the Rothschild approach to measuring market power, we conclude that:
A. there is significant monopoly power in this industry. B. the Herfindahl index for this industry is ?2. C. the Herfindahl index for this industry is 2. D. there is little monopoly power in this industry.
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, in order to sell the house and move to another city, the homeowners would be required at closing to pay (in addition to the proceeds from the home sale)
A. nothing. B. $50,000 plus any transaction costs and real estate fees. C. any transaction costs and real estate fees. D. $50,000.