All of the following are benefits of the Fed having only the single goal of price stability EXCEPT
A) the Fed would be more credible.
B) the fed would not be distracted and led astray by other concerns.
C) there would be greater reliance on fiscal policy for economic stabilization.
D) the Fed would be free from political pressures.
C
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Even though the market for bricks has a low concentration ratio nationally, the U.S. Justice Department might still scrutinize any mergers in this industry because the
A) HHI is high nationally. B) HHI is above 1800 nationally. C) HHI is below 1800 nationally. D) market is regional not national, and the regional concentration might be high.
The above figure shows the payoff matrix facing an incumbent firm. Assuming a fixed cost of entry, will the incumbent deter entry? Why?
What will be an ideal response?
What replaced the Bretton Woods system?
a. the gold standard b. a pooled currency system c. a free float system d. a managed float system e. fixed exchange rates
Public goods, when left to the private market will be:
A. undersupplied. B. over consumed. C. under consumed. D. oversupplied.