The difference between the monetarist and Keynesian views on discretionary monetary policy is that the monetarists
a. believe monetary policy is a stabilizing force and Keynesians believe it is primarily destabilizing.
b. Keynesians think that monetary policy is always used effectively.
c. believe monetary policy is a destabilizing force and Keynesians believe it is potentially stabilizing.
d. favor "fine tuning" the economy by use of monetary policy while the Keynesians do not.
C
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The major advantage of a market economy is that
a. it maximizes the need for resource-flow data b. prices convey most of the information necessary to coordinate economic activity among firms c. data are aimed at central planners d. prices are essentially meaningless e. All of the answers are correct
The supplier of a factor of production has a reservation price of $100. The purchaser of the factor of production has a reservation price of $200. If the factor of production is unique, then:
A. a transaction will occur, and the price paid for the factor of production will be $200. B. a transaction will occur, and the price paid for the factor of production will be $100. C. a transaction will occur, and the price paid for the factor of production will be $150. D. there will be no transaction since $200 is greater than $100.
If the marginal productivity of labor decreases, then
A) the quantity of labor demanded at every possible wage rate will be less. B) the quantity of labor demanded at every possible wage rate will be higher. C) the quantity of labor demanded will not be affected. D) the demand curve for labor will shift upward and to the right.
In the short run, marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.
A. decreasing; increasing B. increasing; increasing C. decreasing; decreasing D. increasing; decreasing