Mainstream economists contend that, as stabilization tools:
A. discretionary fiscal policy is effective, but discretionary monetary policy is not.
B. discretionary monetary policy is effective, but discretionary fiscal policy is not.
C. both discretionary fiscal policy and discretionary monetary policy can be effective if
appropriately used.
D. discretionary fiscal policy and discretionary monetary policy cause more instability than
they cure.
C. both discretionary fiscal policy and discretionary monetary policy can be effective if
appropriately used.
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Tastes for perfect substitutes are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
Price discrimination occurs when:
a. firms maximize their profit by setting price equal to marginal cost. b. a seller charges different prices to different consumers of the same product or service. c. a seller charges the same price to consumers of a different product or service. d. a seller charges different prices to consumers, discriminating by race or gender of the consumer.
The theory that explains the shift of color TV sets production from the United States to Japan and Taiwan is called the _____ theory
a. productivity difference b. factor abundance c. product life cycle d. preference e. human skills
A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it
a. True b. False Indicate whether the statement is true or false