New classical economists believe that:
a. market failure on a large scale is possible.
b. disequilibrium in commodity markets demand government intervention.
c. people are completely aware and informed about everything that is happening.
d. wages are fixed in the short run.
e. people purposefully substitute non-labor activities for work during recession.
e
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Suppose this customer is known to throw a fit and scare away other customers if charged high prices. If the shopkeeper moves first, he would ask for
a. A high price b. A low price c. A pony d. All of the above
In which of the following market structures must the price and output decisions of an individual firm include the possible price and output reactions of the firm's rivals?
a. Monopoly. b. Oligopoly. c. Perfect competition. d. Cartel.
A speculative attack on a country with a fixed exchange rate occurs when:
A. financial market participants believe the government has a large excess of international reserves. B. financial market participants believe the government will have to devalue its currency. C. financial market participants believe the currency is undervalued. D. the country converts its gold reserves into foreign exchange.
A firm faces the labor productivity and cost schedule in the table above. How many workers will this profit-maximizing firm employ?
A. 6
B. 7
C. 8
D. 9