When trying to increase aggregate demand during a period of serious unemployment,
a. monetary and fiscal policies are likely to be equally effective.
b. monetary policy is likely to be more effective than fiscal policy.
c. fiscal policy is likely to be more effective than monetary policy.
d. laissez-faire policy is likely to be most effective.
c. fiscal policy is likely to be more effective than monetary policy.
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The law of diminishing marginal product provides an explanation for why average total cost eventually increases as output is expanded in the short run
a. True b. False Indicate whether the statement is true or false
Which of the following is generally true of a monopolistic competitor operating in the long run?
a. price equal to minimum average total cost b. marginal cost exceeds marginal revenue c. marginal revenue exceeds marginal cost d. price exceeds marginal cost
Which of the following results from patients having better information about their health status than insurers?
a. The principle-agent problem b. Rational ignorance c. Adverse selection d. Externalities e. The substitution effect
Recall the Application about the price and supply of blueberries to answer the following question(s).According to the Application, the upward jump of the price of blueberries from 2005-2007 followed by the drop in the price of blueberries to $1.44/ lb. shows that blueberries are in a/an:
A. constant-cost industry. B. an increasing-cost industry. C. a decreasing-cost industry. D. zero-cost industry.