Over time, the supply of a particular good or service tends to
A. become more elastic.
B. become less elastic.
C. stay about the same.
A. become more elastic.
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Large economies, such as the U.S. economy, should ________ adopt a flexible exchange rate, because giving up the power to stabilize the domestic economy via monetary policy ________.
A. almost never; is of little consequence B. nearly always; is of little consequence C. nearly always; comes with a high cost D. almost never; comes with a high cost
What condition may provide for a relatively small degree of inefficiency under monopolistic competition?
A) There is a single seller and no product differentiation. B) The marginal cost of production is less than the market price. C) The demand curve is relatively elastic so that the price is near the long-run minimum average cost. D) There is only one buyer in the market.
There are certain variables that are so obviously related to past crises that they may serve as warning indicators of potential future crises. Identify one such variable from the following
a. Barriers to trade b. Short-term international investment c. Flexible exchange rates d. Rising international reserves e. Fluctuating share prices
Who once said that taxes are the price we pay for a civilized society?
a. Milton Friedman b. Theodore Roosevelt c. Arthur Laffer d. Oliver Wendell Holmes, Jr.