The economic efficiency of any process will be evaluated by
A) the proportion of marginal to non-marginal costs.
B) the ratio of work done to energy supplied.
C) comparing what is gained from what is sacrificed.
D) the relationship of supply to demand.
C
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Inflation targeting has been adopted by the central banks of several countries including the European Central Bank
Indicate whether the statement is true or false
Which of the following assumptions is TRUE about monopolistic competition?
A) The firm's products are differentiated. B) There are few producers of the product. C) Firms will not advertise. D) It is difficult for firms to enter this industry.
During normal times
A) fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be. B) fiscal policy can immediately correct problems in the economy. C) the Ricardian equivalence theorem makes fiscal policy very effective. D) fiscal policy is not effective because of the recognition time lag.
Which of these is an example of an expansionary fiscal policy?
a. A decrease in fiscal expenditure on Social Security b. An increase in the personal income tax rate c. A decrease in fiscal expenditure on national defense d. An increase in transfer payments