Which of the following is an example of fiscal policy?
A) a reduction in the money supply. B) a reduction in the federal funds rate.
C) a reduction in lump-sum taxes. D) an increase in the physical stock of capital.
C
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"Because of rent seeking, a monopoly may end up earning a normal profit." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
When the free market produces less than the socially optimal quantity of a good,
a. negative externalities must be present b. marginal social cost must exceed marginal private cost c. marginal private benefit must exceed marginal social benefit d. the government should tax production of the good e. there has been a market failure
Exit from a market will stop when
A) accounting losses are zero. B) the cost of capital is equal to the risk-free rate of return. C) economic losses are zero. D) none of these choices.
Each of these is an industrial union except
A. the steel workers' union. B. the auto workers' union. C. the teamsters' union. D. the musicians' union.