The more consumer surplus is generated in a market dominated by a single monopoly, the more efficient the outcome.
Answer the following statement true (T) or false (F)
False
Rationale: First degree price discrimination leads to no consumer surplus but the output level is efficient.
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One drawback in using fiscal policy as a stabilization tool is that fiscal policy:
A. is not useful for dealing with prolonged episodes of recession. B. effects are frequently offset by automatic stabilizers. C. affects potential output as well as aggregate expenditure. D. is too flexible to use to close output gaps.
A decrease in the quantity of reserves held by commercial banks could be the result of
A) a decision by U.S. households to hold less currency. B) the sale of government securities by the Federal Reserve. C) a decrease in the government's budget deficit. D) an increase in the exchange rate.
Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ________ workers.
A. discouraged B. long-term unemployed C. short-term unemployed D. chronically unemployed
What is creeping inflation?
a. Inflation that continues to rise but slowly. b. Inflation that suddenly appears without warning. c. Price levels that suddenly rise without warning. d. Price levels that continue to rise but slowly. e. Inflation that suddenly appears and creates panic.