The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20th century primarily because
a. it provided the only logically consistent view of what caused the Great Depression.
b. it provided a reasonable explanation of what went wrong during the Great Depression and what could be done to prevent it from happening again.
c. it explained how gross domestic product could be measured and why this was important.
d. it derived the conditions necessary for maximum efficiency of resource use and explained how these conditions could be achieved through central planning.
B
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You operate a factory that produces beach towels. Your current level of output equals 2,000 towels per week. Your weekly variable cost equals $8,000 . If your total cost each week equals $9,000 . it follows that:
a. the average variable cost of production equals $2 per towel. b. the average total cost of production equals $4 per towel. c. the average total cost of production equals $4.50 per towel. d. the average total cost of production equals $8 per towel.
Which of the following was not a factor that contributed to the subprime mortgage crisis?
a. false security derived from FDIC insurance on mortgage loans b. lower down payments c. households devoting 25% or more of their income to mortgage payments d. lending to households with adverse credit ratings