All of the following are good examples of network externalities except:
A. cigarettes.
B. computer software.
C. Facebook.
D. the Internet.
Answer: A
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Government tax revenues ________ during an expansion and ________ during a recession, which leads to larger budget deficits during the ________ phase of the business cycle
A) decrease; increase; expansion B) decrease; decrease; expansion C) increase; decrease; expansion D) increase; decrease; recession E) increase; increase; recession
Which of the following statements is true?
A) Adult males, adult females, and teenagers all have similar rates of unemployment due to job losses. B) Almost half of the total teenage unemployment rate appears to be due to the search for the first job. C) Relative to adult males, adult females and teenagers have more frequent unemployment due to reentry and higher quit rates. D) All of the above.
Which of the following is an important implication of the rational expectations argument?
A) Since people form their expectations using all available information, the use of monetary policies to eliminate output gaps will lead to inflation. B) Since any consistent set of monetary policies will be learned and anticipated by a population with rational expectations, policies designed to influence the economy to a level of production other than the potential real GDP will be ineffective. C) Although people may revise their expectations about the price level and future economic activity, they cannot act on these changes because in reality, wages and prices are sticky. Thus, policy intervention is necessary. D) Policymakers must constantly monitor economic activity and revise their economic policy goals to keep up with changing expectations of a population with rational expectations.
With respect to the pure monopolist's demand curve, it can be said that:
A. the stronger the barriers to entry, the more elastic is the monopolist's demand curve. B. price exceeds marginal revenue at all outputs greater than 1. C. demand is perfectly inelastic. D. marginal revenue equals price at all outputs.