Policy actions designed to allow relatively open competition in national stock and bond markets are called
A) capital market liberalization.
B) financial sector deregulation.
C) cross-border mergers and acquisitions.
D) regulatory arbitrage.
A
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
New classical economists
a. accept the monetarist notion that markets are perfectly competitive except for a lack of perfect information. b. do accept the difference between the short-run and long-run results in the monetarist analysis of the effects of aggregate demand on output and employment. c. accept the difference between the short-run and long- run results in the Keynesian analysis of the effects of aggregate demand on output and employment, but not in the monetarist analysis. d. accept the difference between the short-run and long-run results in the monetarist analysis of the effects of aggregate demand on output and employment, but not in the Keynesian analysis. e. Both a and b
When private costs equal social costs, it means that:
A. negative externalities are not present in the market. B. positive externalities are present in the market. C. the external cost must be small relative to the private cost in the market. D. no externality of any kind is present in the market.
In the long-run version of the aggregate demand and aggregate supply model, a shift in the aggregate demand curve:
A. can change the inflation rate as well as the real growth rate. B. can change the inflation rate, but not the real growth rate. C. can change the real growth rate, but not the inflation rate. D. can change neither the real growth rate nor the inflation rate.