John Maynard Keynes created the aggregate expenditures model based primarily on what historical event?
A. Bank panic of 1907.
B. Great Depression.
C. Spectacular economic growth during World War II.
D. Economic expansion of the 1920s.
B. Great Depression.
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If more and more labor is employed while keeping all other inputs constant, the marginal physical productivity of labor
a. will eventually increase. b. will eventually decrease. c. will eventually remain constant. d. cannot tell from the information provided.
Economic growth can be depicted as
A. a movement along the production possibilities curve. B. a shift of the LRAS curve to the left. C. an inward shift of the production possibilities curve. D. a shift of the LRAS curve to the right.
A monopsonist is
A. a single buyer of an input. B. a firm that has a unionized labor force. C. a firm with monopoly power in the local area. D. a single seller of an input.
In any case where there is a positive externality, forming a government agency to solve the problem rarely results in an efficient outcome.
Answer the following statement true (T) or false (F)