Which of the following is a major area of disagreement between activists and nonactivists?
a. Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree.
b. Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree.
c. Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag.
d. Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.
A
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In the long run, firms in many industries often experience a falling average total cost curve as a result of:
a. gains through trade. b. increasing marginal returns. c. economies of scale. d. lower fixed costs.
The euro coins can be spent only in the countries where they are made, because one side of the coin has an image that is individualized for each of the countries of the European Union
a. True b. False Indicate whether the statement is true or false
Which of the following is seen as a benefit to society in moving away from using checks to electronic banking?
a. processing checks is a capital-intensive process b. electronic banking is a labor-intensive process c. processing checks is less costly than electronic banking d. electronic banking is a more efficient process than check clearing
Suppose a patent is granted for a product that has the linear demand curve P = a - b Q. The constant marginal cost of producing this product is $50 per unit, a unit sells for $150, and consumers purchase 100 units of the good at that price. If the monopoly is maximizing profit, the deadweight loss is
A) $5000. B) $2500. C) $7500. D) $10000.