Which of the following industry types features a horizontal long-run supply curve?
a. An increasing-cost industry
b. A constant-cost industry
c. A decreasing-cost industry
d. A monopolistically competitive industry
b
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During the 2007-2009 financial crisis, many households found themselves with debts to repay. How might this explain the consumer response to the 2008 Tax Rebate?
What will be an ideal response?
A conclusion from the study of automobile markets by Allen Jung of the University of Chicago was that:
a. the more experienced buyers got better deals. b. dealer characteristics had considerable influence on the prices they offered. c. variation in the offered price by dealers of cars was uniform. d. there was little or no difference between the average prices quoted to different types of buyers.
A supply side policy is designed to:
(a) Raise the level of demand in the economy. (b) Lower the demand for domestic goods in an economy. (c) Improve the ability of the economy to produce goods and services. (d) None of the above.
Which statement about the owners of the Fed is true?
a. They have little control over the Fed’s operations. b. They receive large payments based on interest rates. c. They select the members of the Federal Reserve Board of Governors. d. They are in charge of making monetary policy decisions.