Which of the following is not an example of government's role as a referee?
A. Laws prohibiting businesses from meeting to fix prices
B. Regulations governing safety in the workplace, wages, overtime, and hours of work
C. Equal opportunity and labor laws that restrict businesses' freedom to hire and fire whomever they want
D. Laws that require states and the federal government to balance their budgets
Answer: D
You might also like to view...
Suppose that there is a temporary, but significant, increase in oil prices in an economy with an upward-sloping SRAS curve.
a. If policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase, should they increase or decrease the quantity of money in circulation? Why? b. If policy makers wish to prevent equilibrium real GDP from changing in response to the oil price increase should they increase or decrease the quantity of money in circulation? Why? c. Can policymakers stabilize both the price level and real GDP simultaneously in response to a short-lived but sudden rise in oil prices? Explain briefly.
Which of the following is consistent with secular deflation?
A) a persistently decreasing price level caused by money being withdrawn from the economy B) a persistently increasing price level caused by several periods of economic growth with decreasing AD C) a persistently decreasing price level caused by increases in government expenditures D) a persistently decreasing price level caused by several periods of economic growth with stable AD
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
In the above figure, if the price is $16 per unit, a profit maximizing perfectly competitive firm will
A) shut down. B) incur an economic loss but continue to operate. C) make zero economic profit. D) make an economic profit.