Industry X, which is perfectly competitive, is in long-run equilibrium. Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees
As a result of this new requirement we would expect to observe: A) a decrease in price and an increase in total output in industry X.
B) a decrease in price and total output in industry X.
C) an increase in price and a decrease in total output in industry X.
D) an increase in price and total output in industry X.
C
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The Taylor rule says that the ________, the lower the federal funds rate
A) higher the volume of bank reserves B) higher the inflation rate C) lower the output gap D) higher the supply of money
Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A) entry barriers get lower but exit gets more difficult. B) entry becomes harder but exit becomes easier. C) entry gets harder and the number of firms dwindles. D) none of the above.
If U.S. net exports are positive, then net capital outflow is
a. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. b. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. c. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners. d. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. As long as counterfeit U.S. currency remains undetected and in circulation, an increase in the U.S. inflation rate would essentially:
A. decrease the real value of the counterfeit currency. B. increase the real value of the counterfeit currency. C. decrease the nominal value of the counterfeit currency. D. increase the nominal value of the counterfeit currency.