A data lag
What will be an ideal response?
It may take some time for the government to collect information about economic problems such as unemployment.
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The above table gives the demand schedule for a single-price monopoly. If the marginal cost is $3, the profit maximizing output for the monopoly will be between
A) 1 to 2 units. B) 2 to 3 units. C) 3 to 4 units. D) 4 to 5 units. E) Exactly 5 units.
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive, what government policy might move the market closer to efficiency?
A) The government could subsidize the production of steel. B) The government could tax the production of steel. C) The government could issue vouchers to steel consumers. D) None of the above answers is correct.
Did you ever hear of a util before studying economics? Probably not. Utils
a. are the same as income b. are used to measure the amount of satisfaction a person obtains from consuming a good c. are not valid measures in economics d. are hypothetical indicators of the effectiveness of public utilities e. measure price increases of a good relative to those of other goods
If the self-correcting mechanism operates quickly,
a. direct intervention is less necessary to close a recessionary gap. b. fiscal stimulus is far more useful in closing a recessionary gap than monetary policy. c. monetary policy is far more useful in closing a recessionary gap than fiscal policy. d. fiscal stimulus is ineffective and inflation will occur.