When a man with a lawnmower in his trunk stops at Bill's house and offers to mow Bill's yard, economists assume the man
A) expects to be made better off by mowing Bill's yard for a fee.
B) is desperate.
C) is being exploited.
D) both A and B.
A
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In the above figure, the slope at point b is
A) 1. B) 5/2. C) between 1 and 5/2. D) greater than 5/2.
Which of the following is true in the classical model?
a. A spontaneous increase in spending can cause an increase in output and employment. b. An increase in output and employment can cause a decrease in spending. c. A spontaneous decrease in spending can cause an increase in output and employment. d. An increase in output and employment can cause an increase in spending. e. A spontaneous decrease in spending can cause a decrease in output and an increase in employment.
If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households
Indicate whether the statement is true or false
Firms that continue to produce when sales are temporarily low in an effort to avoid costly fluctuations in production are engaging in ________
A) second degree price discrimination B) stock out avoidance C) work in progress D) production smoothing