Milton Friedman, a leading monetarist, believes the Fed should not manage the money supply in a discretionary manner. Which of the following statements is NOT a reason for Friedman's belief?
A. The limitations of our knowledge make any discretionary policy very unpredictable.
B. The past performance of the Fed has not given a strong indication that it has the ability to regulate the money supply in such a manner.
C. Friedman advocates the rule of steady monetary growth.
D. Discretionary monetary policy promotes confidence within the business community by providing a greater amount of stability to money and credit.
D. Discretionary monetary policy promotes confidence within the business community by providing a greater amount of stability to money and credit.
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Given the payoffs in the matrix shown, Firm A:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. has a dominant strategy to compete.
B. does not have a dominant strategy.
C. has a dominant strategy to collude.
D. None of these statements is true.
For a profit-maximizing monopolistically competitive firm, price exceeds marginal cost in
a. the short run but not in the long run. b. the long run but not in the short run. c. both the short run and the long run. d. neither the short run nor the long run.
Which of the following statements does not accurately describe the market for labor?
a. The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages. b. Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level. c. Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker. d. Discrimination by employers against a group of workers may artificially lower wages for that group.
The added revenue that a firm takes in when it increases output by one additional unit is _______ revenue.
A) total B) marginal C) variable D) fixed