Which of the following is a major deficiency of fiscal policy as a stabilization tool?
a. Congress is reluctant to make changes in either taxes or expenditures.
b. The Constitution requires the president to submit and Congress to pass a balanced budget.
c. Both political and economic factors make it unlikely that changes in fiscal policy will be timed correctly.
d. A change in fiscal policy exerts major effects on the economy quickly.
C
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Identify the market structure characterized by many small firms selling somewhat different products
a. Monopoly b. Monopolistic competition c. Perfect competition d. Duopoly
Which of the following is NOT a characteristic of a market in equilibrium?
A. Neither buyers nor sellers want the price to change. B. Sellers can sell as many units as they want at the equilibrium price. C. There is neither excess supply nor excess demand. D. Buyers can buy as many units as they want at the equilibrium price.
Market discouraging actions, like taxation, can help bring efficiency to markets where externalities are present.
Indicate whether the statement is true or false.
The only way to judge monopoly is to use both structure and performance criterion simultaneously.
Answer the following statement true (T) or false (F)