Monetarists believe that:
A. prices and wages are inflexible or sticky.
B. both product and resource markets are monopolistic.
C. velocity is relatively stable.
D. the economy is more stable when active fiscal and monetary policy are used.
C. velocity is relatively stable.
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Which of the following statements about explicit costs is true?
A. They usually exceed implicit costs. B. They are the only costs that matter to business owners. C. They appear on the firm's balance sheet. D. They are difficult to measure.
A normal good is a good for which demand increases as:
a. the income of consumers increases. b. its own price increases. c. the price of close substitutes decreases. d. the total number of consumers increases. e. a reflection of changing consumer tastes.
Imagine the government would like to increase revenues by taxing the people. If they place a unit tax on certain goods, this is equivalent to
a. c and e b. shifting the demand curve to the right c. reducing everyone's income by the amount of the unit tax d. raising the fixed costs of producers e. shifting the supply curve to the left
How are net exports and the government sector balance linked?
What will be an ideal response?