The First Industry to Be Shaped by the Large Factory

question 33

Multiple Choice

The first industry to be shaped by the large factory system was

• A) textiles.
• B) guns.
• C) ironworks.
• D) pottery.
• E) shoemaking.

Analyze the effectiveness of discrete aggregate demand policies versus policy rules in economic management.

Understand the different viewpoints on the stability of the capitalist economy and the role of competition within it.

Understand the basic principles of monetarism and its approach to managing the economy.

Analyze the concept of rational expectations and its implications for economic policy.

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Definitions:

Close Substitutes

Goods or services that can serve as replacements for each other with little loss of utility to the consumer.

OPEC Oil Cartel

An international organization of oil-producing countries that coordinates and unifies the petroleum policies of its member states to stabilize oil markets and prices.

Inelastic

Describing demand that does not significantly change with the price changes of a good or service.

Income Elasticities

Refers to the sensitivity of the demand for a good to changes in the income of the consumers who buy this good.