Economists have observed that fiscal policy can be implemented very quickly while monetary policy is much slower to enact
a. True
b. False
Indicate whether the statement is true or false
False
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Using a graph, illustrate what the market effects of a quota, a tariff, or a complete ban on imports would be
What will be an ideal response?
Which of the following statements is correct?
A) Monopolies are guaranteed to earn an economic profit. B) The market demand and the firm's demand are the same for a monopoly. C) Monopolies have perfectly inelastic demand for the product sold. D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve. E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.
The market for Product A is at equilibrium at a price of €35. How will the market be affected if the government introduces a ceiling price which is €15 below the equilibrium price?
a) The ceiling price will have no effect on the market. b) The new price for product A will be €20 and there will be excess demand at this price. c) The new price for product A will be €50 and there will be excess supply at this price. d) The market mechanism will ensure that the market returns to equilibrium.
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. If the price of a sandwich is $1 and the price of a soda is $1, Marian should spend her first dollar on a ____ and her second dollar on a ____.
A. sandwich; soda B. sandwich; sandwich C. soda; sandwich D. soda; soda