Which of the following is correct? Whenever the monetary authority pegs the interest rate,
a. it must be ready to adjust the interest rate on demand.
b. the monetary authority must exchange money for bonds on demand.
c. it has control of the quantity of money.
d. None of the above
B
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Which of the following statements regarding patents is false?
A) Patents can help firms gain market power through innovation and then act as a barrier to entry. B) A firm that has market power as a result of a patent may be more likely to innovate than a perfectly competitive firm. C) Patents encourage the production of information, which might otherwise be under supplied. D) Patents can last for an indefinite time period.
If a monopolist is producing the quantity at which marginal revenue exceeds marginal cost, it should
A) continue to produce this amount if it wants to maximize profits. B) reduce output if it wants to maximize profits. C) reduce price and keep output unchanged if it wants to maximize profits. D) increase output if it wants to maximize profits.
The slope of an indifference curve for products X and Y is the ratio of the marginal utility of product X to the marginal utility of product Y.
Answer the following statement true (T) or false (F)
Each year, researchers at the Heritage Foundation and the Wall Street Journal look at 50 different categories of economic freedom for countries around the world. In each category, they give each nation a score based on extent of economic freedom in that category. What sorts of questions regarding the level of economic freedom might these researchers have asked within this survey which would help rank nations' economic freedom? Please list at least three questions.
What will be an ideal response?