When the optimal quantity of consumption is zero for a given good:
A. a ban is often the best solution.
B. changing social norms is often the best solution.
C. privatizing the good is often the best solution.
D. government provision of the good is often the best solution.
A. a ban is often the best solution.
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In an open economy, a decrease in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.
A. decreases; decreases B. decreases; increases C. increases; decreases D. increases; increases
Which of the following may not characterize an oligopoly?
A. No market power. B. A few firms. C. Substantial control over price. D. High barriers to entry.
An increase in the price of oil will cause which of the following in the medium run?
A) no change in the level of output B) no change in the price level C) an increase in the unemployment rate D) a reduction in the interest rate E) none of the above
Other things equal, a decrease in the price level will:
A. shift the aggregate supply curve to the left. B. shift the aggregate demand curve to the left. C. cause a movement up a short-run aggregate supply curve. D. cause a movement down an aggregate supply curve.