Why does entry primarily occur?
a. When a firm has the potential to profit from making a good
b. When a firm has the potential to engage in perfect competition
c. When a market contains very few competitors
d. When goods in a market are in high demand
a. When a firm has the potential to profit from making a good
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The marginal cost of medical care to the patient is zero under:
A. government-sponsored health care coverage. B. an HMO. C. first-dollar health insurance coverage. D. no circumstances.
Repos and reverse repos are
A) permanent injections or deletions of reserves. B) always dynamic policy tools. C) temporary injections or deletions of reserves. D) sometimes defense, but most often dynamic policy tools.
The higher the expected inflation, _____
a. the higher the nominal rate of interest that lenders require and that borrowers are willing to pay b. the lower the nominal rate of interest that lenders require and that borrowers are willing to pay c. the higher the nominal rate of interest that lenders require and the lower the nominal rate of interest that borrowers are willing to pay d. the higher the real interest rate that lenders require e. the higher the real interest rate that borrowers are willing to pay
What to do about inflationary and employment problems in the economy? Conservative economists advocate
a. strong fiscal policy, particularly taxing luxuries b. strong monetary policy, particularly taxing luxuries c. no interference in the private sector d. that to pursue aggressive and consistent policy, the Federal Reserve System should become a department with the executive branch of government e. relying on trends in real business cycles to implement expansionary fiscal policy