The two-period dynamic monopoly model is more useful than the static monopoly model in analyzing monopoly behavior when
A) the product produced requires a bandwagon effect.
B) the product produced generates a positive network externality.
C) the monopoly initially uses a lower introductory price.
D) All of the above situations.
D
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Which of these refers to the “individual mandate” in the Patient Protection and Affordable Care Act (PPACA) passed in 2010?
A. All physicians must treat any patient without charging a fee. B. All United States residents are required to carry insurance or pay a fine. C. All physicians must earn the same annual salary, regardless of specialty. D. All of the above
If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is
A) $10 billion. B) $60 billion. C) $50 billion. D) $40 billion. E) More information is need to answer the question.
Which of the following will not shift the demand curve for a good?
A) an increase in population B) a decrease in the price of a substitute good C) an increase in consumer incomes D) an increase in the price of the good
Open market sales of bonds by the Federal Reserve drain reserves from the banking system and shift
a. the allocation of wealth between bonds and stocks b. the economy toward a trough in the business cycle c. the money supply curve leftward d. reserves to nonmember banks e. the demand for money curve leftward