The task of economic regulation is to
a. protect monopoly profits.
b. approximate the results of the competitive market.
c. replace competition with government ownership.
d. increase competition within the market.
b
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In the case study discussed in the chapter, the electronics firm was actually enhancing its profits by selling calculators at a price that was below average cost.
Answer the following statement true (T) or false (F)
It is impossible for one person to have a comparative advantage in all tasks
a. True b. False
What is most likely used to create a common denominator between countries’ GDP in the long run?
a. GDP deflator b. market exchange rate c. purchasing power parity d. nominal value
Forward guidance is:
A. statements today about policy targets in the future. B. statements of policy changes and dates those changes will take effect. C. asset purchases that shift the composition of the Fed's balance sheet. D. expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.