A theory stating that individuals make purchasing decisions based on tastes which change randomly at random intervals is not useful because
A) it is not possible to test the predictions of the model.
B) tastes are not the only factor influencing behavior.
C) the model is too simplistic.
D) the predictions of such a model would be incorrect.
A
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The negative supply shock of 2007, compared to the shocks in 1973 & 1979, involved ________
A) a larger decrease in aggregate demand B) larger decreases in the real interest rate C) smaller decreases in aggregate supply D) larger increases in the real interest rate
The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the (i) average revenue curve. (ii) marginal cost curve. (iii) demand curve
a. (i) only b. (i) and (ii) only c. (i) and (iii) only d. (iii) only
The exchange rate is the price measured in one country's currency of buying several units of another company's currency
Indicate whether the statement is true or false
The most efficient way to get firms to reduce pollution is to
A) set uniform emission standards and require all firms to meet the standards. B) make the worst polluters shut down and go out of business. C) make them pay for the social costs of production and let them decide how to respond to the higher costs. D) provide firms and consumers with the information about the effects of their actions and encourage them to behave responsibly.