Proponents of passive policy making believe that
A) the existence of time lags makes active policy ineffective or even procyclical.
B) time lags do not exist so the economy will adjust too rapidly with active policy.
C) government should not follow any particular policy.
D) fiscal policy is always better than monetary policy in stabilizing the economy.
A
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Jake can wash 6 cars or mow 3 lawns during the same time. His marginal cost of washing a car is:
a. mowing one-third lawn. b. mowing half a lawn. c. mowing one lawn. d. mowing 2 lawns.
What is the long-run effect on the demand curve of a monopolistically competitive firm when more firms enter the market?
A. Demand curve shifts to left. B. Demand curve remains the same. C. Demand curve shifts to right. D. Demand curve become flatter.
When a good is more narrowly defined (for example, airline travel versus Delta Airlines travel),
a. it will have fewer available substitutes so demand will be more elastic. b. it will have fewer available substitutes so demand will be less elastic. c. it will have more available substitutes so demand will be more elastic. d. it will have more available substitutes so demand will be less elastic.
Economic discrimination and prejudice
A. are synonymous. B. must both exist in statistical discrimination. C. often occur together. D. are mutually exclusive.