One of the major insights by economist John Maynard Keynes about production was that:
A. firms may not produce all they can at a given price, but what they can sell.
B. firms generally produce as much as they can at a given price.
C. government spending needs to be kept in check in order for the economy to operate efficiently.
D. household spending patterns don’t really influence the health of the economy.
A. firms may not produce all they can at a given price, but what they can sell.
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In June 2008, the dollar bought 1.6 Brazilian reals and in October, the dollar bought 2.4 reals. This resulted in a
A) a movement upward along the supply curve for dollars. B) a movement downward along the supply curve for dollars. C) rightward shift in the supply curve for dollars. D) leftward shift in the supply curve for dollars.
The slope of the indifference curve is referred to as
A) the price ratio. B) the marginal tradeoff rate. C) the marginal rate of consumption. D) the marginal rate of substitution.
The law of diminishing marginal utility states that total utility must eventually diminish in the consumption of any good or service
Indicate whether the statement is true or false
The ________ approach is a method of calculating GDP by adding up all payments to owners of resources used to produce output during the year
a. expenditure b. income c. double counting d. investment