Keynes used the term "animal spirits" to refer to the_____.
A. institutional factors that lead to economic downturns
B. economic forces that lead markets to reach equilibrium
C. psychological factors that lead to shifts supply and demand
D. forces that lead firms to enter a market in response to profit opportunities
Answer: C
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Government polices aimed at changing the underlying structure or institutions of the nation's economy are called:
A. trade policy. B. structural policy. C. fiscal policy. D. monetary policy.
Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If the cash flow of project Y is discounted at project X's internal rate of return, this firm will
A) choose project X if the net present value of project Y is positive. B) choose project X if the net present value of project Y is negative. C) choose project Y if the net present value of project Y is positive. D) choose project X regardless of the net present value of project Y.
Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called
a. price discrimination. b. cost-shifting. c. categorical costing. d. reprehensible and unethical. e. creative accounting.