Professor Tabarrok suggests that monetary policy is both an art and a science because of the complexity of answering all of the following questions EXCEPT:
A. how to use monetary policy tools.
B. where to apply monetary policy tools.
C. when to use monetary policy tools.
D. which monetary policy tools to use.
Ans: B. where to apply monetary policy tools.
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A country would tend to experience currency depreciation relative to other countries if: a. the profitability of investments in other countries increases relative to that country
b. people in the foreign currency markets expect the value of the currency to fall in the near future. c. the foreign demand for its exports decreases. d. any of the above occurs.
The OPEC-designed oil price increases caused the cost of producing almost everything in our economy to increase, resulting in
a. demand-pull inflation b. cost-push inflation c. deflation d. depression e. increased leveraged buyouts
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, its total revenue equals the area:
A. 0HNC. B. 0FJB. C. ELJB. D. 0FLE.
Why are utils a useful unit of measure?
a. Utils demonstrate the relative levels of satisfaction a good delivers to multiple consumers. b. Utils demonstrate the relative levels of satisfaction goods deliver to a given consumer. c. Utils can be used to model the sometimes-irrational decisions consumers make. d. Utils can be used to prove that marginal utility and total utility are independent of one another.