Fiscal policy can:
A. cause inflation.
B. have real effects on the economy in the short run.
C. bring the economy to its long run equilibrium faster than it can correct itself.
D. All of these are true.
Answer: D
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Profit can be defined as the
a. difference between the sales revenue of a business firm and the opportunity cost of the resources required to produce the goods supplied by the firm. b. difference between a company's income and direct monetary costs of production. c. difference between the price of a product and the consumer's valuation of the good. d. amount of total revenue earned by the firm minus its payments to stockholders.
The random walk theory of stock prices indicates that
a. if they are willing to do a little research, even beginning investors will be able to pick the stocks that will increase most in price in the future. b. managed mutual funds will persistently earn a higher rate of return than indexed funds. c. current stock prices already reflect information about factors influencing future stock prices that can be forecast with any degree of accuracy. d. stock market investors can expect to earn a steady real rate of return of about 7 percent annually.
What is game theory and what light does it shed on the duopolists' dilemma?
What will be an ideal response?
An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called
A) an import quota. B) an export quota. C) a non-tariff trade barrier. D) a voluntary export restraint.