The recognition time lag recognizes that it takes time
A) to collect information about the state of the economy.
B) for any change in policy to take effect and for people to recognize that the policies are effective.
C) to get politicians to agree on the best policy to enact.
D) for the politicians to enact the policy once the need for change has been recognized.
A
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If a tax is imposed in a market in which demand is perfectly inelastic
A) the buyers pay the entire tax. B) the sellers pay the entire tax. C) the buyers and the sellers both pay a portion of the tax. D) neither the buyer nor the seller pays the tax.
Which of the following occurs during a recession?
a. Output falls, employment rises, and unemployment rises. b. Output rises, employment falls, and unemployment falls. c. Output falls, employment falls, and unemployment rises. d. Output rises, employment rises, and unemployment falls. e. Output falls, employment falls, and unemployment falls.
How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
a. The demand for beef would increase, increasing beef prices. b. The demand for beef would decrease, decreasing beef prices. c. The supply of beef would increase, decreasing beef prices. d. The supply of beef would decrease, increasing beef prices.
The competitive market price of a good
A. is equal to the value consumers place on the last unit they purchased. B. must reflect both the value to consumers and cost to producers. C. must exceed the cost of producing an extra unit of the good. D. must be less than what consumers are willing to pay for an additional unit of the good.