Classical economists believed that the economy would always return to full employment
a. True
b. False
A
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The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the
A) spillover principle. B) principle of diminishing returns. C) principle of opportunity cost. D) marginal principle.
The dominant factor why the nominal interest rate differs among nations is that ________ differs among nations
A) inflation rate B) the price level C) potential GDP D) the quantity of money E) the unemployment rate
Which of the following best defines the vicious circle of poverty?
a. Countries are poor because of lack of education and training for workers. b. Countries are poor because of poor international credit. c. Countries are poor because of high population growth. d. Countries are poor because they cannot afford to save and invest.
Consumer equilibrium occurs where the budget line is tangent to the:
A. lowest possible indifference curve. B. highest possible indifference curve. C. utility maximizing indifference curve. D. utility equalization indifference curve.