Is the monopolist supply decision more complicated than that of competitive supply?
A. Yes, because the monopolist can choose its price, and the perfect competitor cannot.
B. No, because they are both price takers.
C. No, because the market determines the quantity for the monopolist.
D. No, because the market determines the price for both firms.
Answer: A
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The Federal Reserve econometric model estimates that it takes __________ for crowding out to reduce the impact of a 1 percent increase in government spending, with the money supply held constant, to zero
A) 2 years B) 3 years C) 4 years D) Crowding out never reduces the impact to zero.
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, and Andy has an unlimited income, how many units of potato chips will he consume?
A) 5 B) 6 C) 7 D) 8 E) none of the above
In the analysis of educational spending on outcomes, it is generally the case that
A. spending on raising teacher salaries and reducing class size matters. B. only the spending on reducing class size matters. C. neither higher salaries nor reduced class size matters. D. only the spending devoted to raising teacher salaries matters.
The effect of changes in economic activity on the budget deficit is called
A) fine tuning. B) debt monetization. C) the structural deficit. D) tax smoothing. E) none of the above