A policymaker against stabilizing the economy would be likely to believe
a. policymakers should "do no harm".
b. there are no obstacles to the practical application of policy in real life.
c. policy lags are short enough that implementing policy changes in response to recession is not too risky.
d. policy mitigates the magnitude of economic fluctuations.
a
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Which of the following statements is true?
A) The basis for both first-degree price discrimination and third-degree price discrimination is differences in the buyers' willingness to pay for a good. B) The basis for both first-degree price discrimination and third-degree price discrimination is differences in the sellers' willingness to accept payment for a good. C) The basis for first-degree price discrimination is differences in willingness to pay, whereas the basis for third-degree price discrimination is differences in the sellers' willingness to accept payment for a good. D) The basis for first-degree price discrimination is differences in the seller's willingness to accept payment for a good, whereas the basis for third-degree price discrimination is differences in buyers' willingness to pay for a good.
If the income elasticity of demand for a Snickers bar is 0.59, then we know that within the relevant price range for Snickers bars, it is
a. price elastic b. price inelastic c. income inelastic d. income elastic e. according to the economist's definition of inferior, an inferior good
When bond prices rise,
a. stock prices must fall. b. interest rates must fall. c. interest rates must rise. d. bankruptcies generally increase.
Maggie buys peanut butter and jelly, both of which are normal goods. When the price of peanut butter rises, the income effect induces Maggie to buy ________ peanut butter and ________ jelly.
a. less, less b. more, more c. more, less d. less, more