When economists say that there is a time lag in the effect of monetary policy, what do they mean?
a. That it takes time to observe the effects of fiscal policy on the economy
b. That the Fed takes awhile to figure out what it wants to do
c. That the Congress takes awhile to figure out what it wants to do
d. That it takes time to observe the effects of monetary policy on the economy
e. That the public needs time to decide how to respond to monetary policy changes
D
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Demand in a perfectly competitive market is Q = 100 - P. Supply in that market is Q = P - 10. What is the market equilibrium price and quantity? Given that price and quantity, how much consumer surplus, producer surplus, and deadweight loss is there? If the government imposes a $10 per unit sales tax, what is the new equilibrium price and quantity? Once the government imposes the tax, how consumer surplus, producer surplus, and dead-weight loss is there?
What will be an ideal response?
A firm's sunk costs are $100,000 and its marginal costs are $250 per unit. It produces 500,000 units and prices it at $400 per unit., How low can price go before the firm decides to shut down?
a. $150 b. $250 c. $250.20 d. $400
One should be wary of consultants peddling best practices or secrets to success because
a. They have different incentives than you do b. Such best practices are public knowledge and easily duplicated c. These best practices can at best only provide temporary profitability d. All of the above
A good is considered nonrival-in-consumption if
a. many individuals can share in the consumption of the same unit of the good. b. the consumption of the good by one individual lowers the amount available for others. c. even nonpaying customers can receive the full benefit from the good. d. its production is financed through tax revenue rather than market prices.