A basic conclusion of Keynesian analysis is that
A. Small macro disturbances can lead to much larger macro problems.
B. The economy self-adjusts to reach full employment and a stable price level.
C. Equilibrium GDP is consistent with price level stability.
D. Equilibrium GDP is consistent with full employment.
Answer: A
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient. B) resource allocation is inefficient. C) too few tons of fertilizer are produced. D) consumers must pay too high a price for fertilizer.
Ezybuy is a newly opened chain of departmental stores that offers its customers free home delivery for purchases above $100 . If this promotional policy increases the cost borne by the seller by $10 for every transaction, while each customer values this service at $3, it can be said to generate economic value
Indicate whether the statement is true or false