In Monetarist theory, the role of the government should be to:
a. Control prices.
b. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments.
c. Do everything in its power to promote exports.
d. All of the above.
e. None of the above.
.B
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For every gift that A gives to B from the first to the tenth gift, A receives a net benefit of $10. The additional cost to A of giving an additional gift is constant at $5. It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis)
A) downward-sloping over units 1 -10. B) upward-sloping over units 1-10. C) horizontal over units 1-10. D) vertical over units 1-10. E) There is not enough information provided to answer the question.
We have had some degree of inflation since
A. 1900. B. 1920. C. 1940. D. 1960.
If a firm operates in a perfectly competitive market, then
A) all firms will advertise. B) no firms will advertise. C) the market leader will advertise. D) new firms will advertise.
The marginal propensity to consume represents
A) the level of consumption that occurs if disposable income is zero. B) the ratio of total consumption to disposable income. C) total income minus total taxes. D) the change in output caused by a one-unit change in autonomous demand. E) the change in consumption caused by a one-unit change in disposable income.