If firms in a particular market sell similar or identical products, then the market is (i) perfectly competitive. (ii) monopolistically competitive. (iii) an oligopoly
a. (i) or (ii) only
b. (ii) or (iii) only
c. (i) or (iii) only
d. (i) only
c
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Refer to the scenario above. Net exports of Lawland equal:
A) $680 billion. B) -$180 billion. C) -$210 billion. D) $1,820 billion.
Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
a. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable. b. that changes in the money stock do not affect output or prices. c. the Fed will miss its money supply targets and make the economy worse. d. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
To internalize a consumption externality in the market for a toxic chemical
a. a unit subsidy can be offered on production equal to the MEC b. a unit tax can be imposed equal to ?MEB c. a tax should be set equal to the MSC d. none of the above
The doctrine of laissez faire is based on the belief that
A. Government failure does not exist. B. Markets result in an unfair distribution of income. C. Markets are likely to do a better job of allocating resources than government directives. D. Government directives are likely to do a better job of allocating resources than markets.