Q: How Many Economists Does It Take to Screw in a Light

question 2

Multiple Choice

Q: How many economists does it take to screw in a light bulb? A: None. If the light bulb really needed changing, market forces would have already caused it to happen.
This joke represents the view of

• A) classical economists.
• B) Keynesian economists.
• C) economists who conclude that money illusion is widespread.
• D) economists who conclude that wages and prices are inflexible.

---

Definitions:

Common Stocks

Shares representing ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and/or capital appreciation.

Retained Earnings

Represents the portion of a company's profits not distributed as dividends to shareholders but instead reinvested in the business.

Free Cash Flow

This is a financial performance measure that shows how much cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Management Bonuses

Additional compensation awarded to executives and managers, often tied to performance metrics such as company profitability or achievement of specific goals.