A classical economist believes that
A) if the economy was left alone, it would rarely operate at full employment.
B) the economy is self-regulating and always at full employment.
C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic.
D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
B
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In two-part pricing with identical consumers, a firm at least
A) charges a lump-sum fee equal to the producer surplus. B) sets unit price equal to marginal cost. C) cannot maximize profit compared to single-price monopoly pricing. D) Both A and B.
The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?
a. $170,000 and over b. $205,000 and over c. $250,000 and over d. $325,000 and over