Other things remaining the same, if a nation's expected price level rises, the demand to hold money:
a. Falls.
b. Rises.
c. Does not change.
.A
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A difference between a perfectly competitive industry and a monopoly is that
A) in the long run, firms in a perfectly competitive industry make zero economic profit and a monopoly can make an economic profit. B) a firm in a perfectly competitive industry can perfectly price discriminate but a monopoly cannot. C) only monopolies have an incentive to maximize profit. D) perfectly competitive firms can have a public franchise. E) a barrier to entry protects perfectly competitive firms in the short run and protects a monopoly in the long run.
Suppose the government increases the size of a tax by 20 percent. The deadweight loss from that tax
a. increases by 20 percent. b. increases by more than 20 percent. c. increases but by less than 20 percent. d. decreases by 20 percent.
The shortsightedness effect suggests that benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future.
What will be an ideal response?
De Soto's The Other Path encourages poor countries to use their development policies to do all of the following except
A. Enforce laws to safeguard property. B. Encourage population growth. C. Reduce regulations. D. Encourage entrepreneurship.