Author Question: Which of the following is true about classical economists? a. They argued that the sources of ... (Read 22 times)

rayancarla1 · **on:** Jun 30, 2018

Which of the following is true about classical economists?
a. They argued that the sources of depressions and high unemployment lay within the market system.
b. They advocated laissez-faire policies to promote economic growth.
c. They believed the economy would naturally tend toward unemployment.
d. They believed prices and wages were rigid.
e. They encouraged government intervention in markets.

Question 2

If a firm hires labor for 8,000, pays rent of 4,000, buys raw materials for 13,000 from another firm, earns profits of 1,200, and sells its output for 31,000, the value added by the firm is _____.
a. 4,800
b. 10,000
c. 18,000
d. 25,000
e. 26,200