The flaw of the original Keynesian model of the business cycle is that it
A) assumes away output fluctuations.
B) assumes complete wage rigidity.
C) assumes unrealistic fooling of workers.
D) requires procyclical wage movements and continuous labor market equilibrium.
B
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Which of the following is NOT similar between monopolistic competition and perfect competition?
A) Many firms compete in the market. B) It's easy to enter the market. C) The firms have downward sloping demand curves. D) The firms might incur economic losses in the short run. E) In the long run, the firms earn zero economic profit.
Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.
"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers.". This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods
a. True b. False Indicate whether the statement is true or false
Two goods are complements if:
A. an increase in the price of one good leads to a decrease in demand for the other. B. people tend to consume either one or the other. C. an increase in the price of one good leads to in increase in demand for the other. D. there are no substitutes for either of them.