Nonactivists Propose Doing Nothing in the Face of Economic Hardship

question 22

Multiple Choice

Nonactivists propose doing nothing in the face of economic hardship because ________.

• A)markets can take quite a bit of time to self-correct
• B)excessive unemployment tends to disappear on its own accord
• C)while households feel the hardship,firms typically benefit
• D)all of the above
• E)none of the above

Analyze the impact of price changes on a consumer's budget set and consumption possibilities.

Calculate the price of one good given the price of another good and a fixed budget.

Determine the maximum quantity of goods a consumer can afford under budget and dietary restrictions.

Analyze the effect of income changes on consumer choices and budget constraints.

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Definitions:

Compromise

A settlement of differences by mutual concessions or modification of demands.

Future Favors

A practice commonly seen in developing countries based upon mutual obligation and resulting in the exchange of favors over years and even generations; also used in some industrialized countries such as Japan and South Korea.

Inner Circle

A clique of trusted family members, tribal members, or friends (depending on the culture) who are at the center of power or influence.

Ethical Standards

Principles that govern the behavior of individuals and organizations, determining what is right and wrong.