One reason that many have not accepted Keynes' views about how the government should respond to economic downturns is that:
A. Keynes' arguments run often counter to popular economic intuition.
B. few economists are familiar with Keynes' work.
C. the debate has little to no policy relevance.
D. no economists believe that economic stimulus measures actually work.
Answer: A
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An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is
A) zero, because the person doesn't have a job. B) the cost of bait, any other monetary expenses, and the value of the individual's wages while he was working. C) the cost of bait and any other monetary expenses. D) the cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time.
Refer Exhibit 2-10. Which of the following statements is true?
 ANSWER 11.png)
Which of the following is an example of a demand shock?
A. Hurricane Harry knocks out oil drilling platforms in the Gulf of Mexico. B. Consumers become worried about job loss and buy fewer goods and services than expected. C. Floods in the Midwest destroy crops. D. The federal government unexpectedly requires automobile producers to raise fuel efficiency standards.
As an economy modernizes and its standard of living rises, the proportion of transactions conducted with barter
A. rises. B. falls. C. remains about the same.