The measure of money most closely correlated with the price level and economic activity is:
A. M1.
B. L.
C. M2.
D. M3.
Answer: C
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Zinc Communications developed a new type of cellular telephone that has a three-dimensional (3-D) screen. The company holds a patent on this technology, so they are the only seller of the 3-D phone when it is introduced
Over time, other companies introduce phones that are similar but not identical (i.e., they do not violate the patent held by Zinc). What happens to the demand for 3-D phones facing Zinc and to the profit-maximizing price for the 3-D phone as these similar products enter the market? A) Demand becomes less elastic, price increases B) Demand becomes less elastic, price declines C) Demand becomes more elastic, price increases D) Demand becomes more elastic, price declines
Market pricing as a kind of automatic signalling system that responds to changes in relative scarcities and rapidly redirects economic activity is part of
What will be an ideal response?
What is the overall impact on an economy when import quotas are imposed?
a. Foreign competition is eliminated. b. Consumers and producers win. c. Consumers lose, and producers gain. d. Prices in the affected industry fall.
The policy irrelevance proposition states that
A. anticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP). B. only relatively large expected changes in monetary policy impact the economy. C. in the short run unanticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP). D. only statements from the White House have impact on the economy.