Which of the following is NOT part of classical economic theory?
A. Saving depends upon the rate of interest.
B. Full employment is the norm in laissez-faire capitalism.
C. Wages and prices are inflexible downward.
D. The equilibrium interest rate equals saving and investment.
E. Supply creates its own demand.
C. Wages and prices are inflexible downward.
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The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the:
A. consumer price index. B. consumption cost calculator. C. consumption production index. D. consumer production index.
German luxury car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected Germany's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right. B) The aggregate demand curve would have shifted to the left. C) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. D) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve.
The two types of imperfectly competitive markets are
a. monopoly and monopolistic competition. b. monopoly and oligopoly. c. monopolistic competition and oligopoly. d. monopolistic competition and cartels.
A welfare payment that is reduced when the recipient earns more income is a(n):
A. means-tested benefit. B. inducement for the poor to find employment. C. unconditional benefit. D. fair benefit.