How to Pass Examinations in Economics - 經濟

Now I trun to Keynesain economics, one of the more difficult branches of

economic theory. I begin with a troublesome question:


1. If prices are inflexible, an increase in the wage rates paid by one

firm will not lead to dismiss employees. (Answer: T)*6


The key to this question is that the wage rise only for one firm. Hence

this firm hires kinds of labors that no other firm hires (unless it is being

discriminated against, cruelly). If it did fire any workers, where could they

go? The enterpreneur is a decent chap.


Lesson 6: Not Every Enterpreneur Is Greedy.



Of course, some Keynesian economics is very simple. For example:


1. If investment rise from forty to forty-five and then remains steady at

forty-five, the national income will rise very rapidly and then rise at

a slow rate. (Answer:F)*7


This is very easy, and indeed I put it in merely as a brether before the

next question. Since it requires eighty-seven years and three months for

investment to rise from forty just to forty-one, why should the national income

rise very rapidly?


Lesson 7: Read and Write Carefully




*6: Ibid., p.124.


*7: Ibid., p.98.

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