Multiple Choice
The hands-off view of the classical school rests on which of the following two simple propositions about markets?
A) Demand creates its own supply and markets are basically competitive.
B) Markets are basically competitive and prices are flexible.
C) Market failure occurs and prices are rigid.
D) Wages are sticky downward and market failure is inevitable.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The consumption function shows the relationship between<br>A)
Q11: If a major technological breakthrough occurs, then
Q12: The French economist Jean-Baptiste Say transformed the
Q14: Exhibit 8-1 Disposable income and consumption data<br><img
Q15: When one observes consumption and investment patterns
Q17: The demand curve for investment in the
Q18: That part of disposable income not spent
Q19: Which of the following will increase investment
Q20: Exhibit 8-6 Consumption function<br><br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg" alt="Exhibit 8-6
Q21: According to John Maynard Keynes:<br>A) aggregate expenditures