Functional finance is:
A. a theoretical proposition, not a moral proposition.
B. a proposition supported by public choice economists.
C. based on empirical evidence that fiscal policy can be effective in smoothing business cycles.
D. based on the political realities of voters wanting their government to respond to recessions.
Answer: A
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A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15
What will happen to the number of firms in the industry and to the industry's output in the long run? A) The number of firms remains constant and the industry's output decreases. B) The number of firms and the industry's output increase. C) The number of firms remains constant and the industry's output increases. D) The number of firms and the industry's output decrease.
The assumption of transitive preferences implies that indifference curves must:
A) not cross one another. B) have a positive slope. C) be L-shaped. D) be convex to the origin. E) all of the above
Union membership was relatively low during the Great Depression
a. True b. False Indicate whether the statement is true or false
The principal-agent problem happens because the owner cannot:
A. control the production process. B. monitor the efforts of the manager. C. spend time at the physical plant site. D. evaluate the efforts of the manager.