The effectiveness of monetary policy as a stabilization tool is limited by
a. activist economists, who exert pressure on politicians.
b. the inability to forecast the future and time policy changes in a stabilizing manner.
c. Congressional attempts to offset changes in monetary policy with modifications in fiscal policy.
d. the inability of the Federal Reserve to alter the money supply.
B
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Why does a price ceiling set below the equilibrium price of a good lead to a shortage of the good in the market?
What will be an ideal response?
State the type of correlation between the following sets of variables
a) Consumption and income b) Education and unemployment c) Availability of health care and death rate d) Pollution control measures adopted in Canada, and number of cases of respiratory diseases in Australia
Which of the following markets would have the highest Herfindahl index? A market with
a. ten firms of widely different sizes b. ten firms of approximately the same size c. five firms of widely different sizes d. five firms of approximately the same size e. eight firms exactly the same size
Which of the following is a possible explanation for the shift of the production possibilities curve illustrated?
a. an increase in the number of idle factories b. a technological advance that affects only bicycle production c. a technological advance that affects both pizza and bicycle production d. a decrease in the quantity of labor available due to emigration