Keynesians tend to believe
A) the markets work freely.
B) that free market economics is faulty.
C) that government spending is the source of economic instability.
D) none of these choices.
B
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A perfectly competitive firm definitely makes an economic profit in the short run if price is
A) equal to marginal cost. B) equal to average total cost. C) greater than average total cost. D) greater than marginal cost. E) greater than average variable cost.
For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces
Which of the following is true about the comparative advantage between the two countries? A) Switzerland has the comparative advantage in chocolate. B) Germany has the comparative advantage in watches and chocolate. C) Germany has the comparative advantage in watches. D) Switzerland has the comparative advantage in watches.
Labor productivity, measuring the output per worker
a. increases with increases in technology b. decreases with increases in technology c. increases with increases in capital stock d. is the same as the capital labor ratio e. is the same as the capital output ratio
Table 9.1 Disposable IncomeTotal Consumption(Billions of dollars per year)(Billions of dollars per year)$0$50200210What is the marginal propensity to consume in Table 9.1?
A. 0.15. B. 0.90. C. 0.80. D. 0.85.