John Maynard Keynes, author of The General Theory of Employment, Interest, and Money, argued that
a. classical economic theory was correct
b. the government should follow a policy of laissez faire
c. the critiques of classical economics were flawed
d. the economy does not always perform well in the absence of government guidance
e. instead of focusing on money, the government should control interest rates
D
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David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?
A) Danny has a comparative advantage in processing customers and in stocking shelves. B) David has a comparative advantage in processing customers but not in stocking shelves. C) Danny has an absolute advantage in performing both tasks. D) Danny has a comparative advantage in processing customers but not in stocking shelves. E) David has an absolute advantage in performing both tasks.
Banks require collateral for loans in order to
A) ensure that borrowers have significant amounts of their own funds invested in their businesses. B) charge higher interest rates on loans. C) reduce their tax liability on the interest they collect on loans. D) reduce the total amount they are obliged to lend to any one borrower.