Countercyclical fiscal policy has a serious problem with
a. overshooting the desired impact by a factor of 10.
b. the irreversibility of actions.
c. the tendency of the Federal Reserve to immediately counter Congressional action.
d. the courts as it has been held to be unconstitutional.
e. overshooting the desired impact by a factor of 3.
B
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If TruLite's factory workers receive an hourly wage, described by the equation; Compensation = $5.00 + .10Q, where Q is the number of light switches installed per hour, then:
A. the employee can remain completely risk-averse. B. there are no compensating differentials. C. output becomes a subjective measure of performance. D. the employee must accept risk of production variability.
The "dilemma" in the prisoners' dilemma is that, under certain circumstances,
What will be an ideal response?
If products C and D are close substitutes, an increase in the price of C will:
A. tend to cause the price of D to fall. B. shift the demand curve of C to the left and the demand curve of D to the right. C. shift the demand curve of D to the right. D. shift the demand curves of both products to the right.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The federal government marketing order that helped reduce asymmetric information about kiwifruit led to:
A. a decrease in the spread between the price of New Zealand and U.S. kiwifruit. B. lower quality kiwifruit sales. C. more kiwifruit imports. D. lower kiwifruit sales.