Which of the following policy obstacles could occur because it is difficult to know how market participants will respond to specific policies?
A. Design problems.
B. Goal conflicts.
C. Implementation problems.
D. Measurement problems.
Answer: A
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Refer to Goods X and Y. Suppose the consumer is at an optimum, spending all his income on good X. How are the marginal value of X and the relative price of X related at this corner solution?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. The marginal value of X and the relative price of X must be equal. b. The marginal value of X must be less than or equal to the relative price of X. c. The marginal value of X must be greater than or equal to the relative price of X. d. There is no definite relationship between the marginal value and the relative price of X.
What country in pacific Asia region has one of the worlds largest economies?
a. China
b. Japan
c. India
d. South Korea
e. Indonesia
According to Gordon, for which of the following should policymakers set a target rate of zero?
A) productivity growth B) inflation rate C) unemployment rate D) None of the above
George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George
A) has adaptive expectations. B) has rational expectations. C) is likely to rapidly adjust his forecast to news affecting the future profitability of IBM. D) is likely to make forecasts that reflect closely IBM stock's fundamental value.