Describe the structure-conduct-performance (S-C-P) paradigm
What will be an ideal response?
An analytical approach to examining the structure of an industry and how it affects firm profitability. It holds that the types of products being sold, their price elasticities of demand, the methods used to produce them (especially the role of technology and the existence of scale economies), and the degree to which there are related products (complements and substitutes) will determine the number of firms in the industry, conditions of firm entry and exit, and the extent of product differentiation. The resultant industry structure determines firm price-output and non-pricing strategies which, in turn, determine the degree of firm profitability.
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Models describing the determination of the money supply and the Fed's role in this process normally focus on ________ rather than ________, since Fed actions have a more predictable effect on the former
A) reserves; the monetary base B) reserves; high-powered money C) the monetary base; high-powered money D) the monetary base; reserves
The long-run Phillips curve:
a. is horizontal. b. is the same as the short-run Phillips curve. c. displays a positive relationship rather than an inverse relationship. d. is exponential. e. is vertical.
Which of the following statements best describes the belief among economists about trade?
a. The common belief among economists is that it is better to embrace the gains from trade, and then deal with the costs and trade-offs with other policy tools than it is to cut off trade to avoid the costs and trade-offs. b. The common belief among economists is that it is better to cut off trade to avoid the costs and trade-offs than it is to embrace the gains from trade and then deal with the costs and trade-offs with other policy tools. c. The common belief among economists is that it is better to deal with the costs and trade-offs of trade with other policy tools before embracing the gains from trade, than it is to cut off trade to avoid the costs and trade-offs. d. The common belief among economists is that it is better to cut off trade to avoid the costs and trade-offs, deal with the costs and trade-offs with other policy tools, and then embrace the gains from trade.
The principle of horizontal equity is violated if two people who earn the same amount of income actually pay a different amount in taxes.
Answer the following statement true (T) or false (F)