Monetarists suggest doing which of the following?
A) Maintain a steady growth rate of the money supply.
B) Use fiscal policy to combat unemployment in the short run.
C) Use monetary policy to combat unemployment in the long run.
D) Use fiscal policy to combat inflation in the long run.
A
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People in poor countries may have difficulties achieving economic growth because:
a. their production possibilities curves slope upward instead of downward. b. they must cut back on current consumption to increase capital goods. c. they have a solid consumption base already in place. d. their resource bases are fully developed. e. the law of increasing costs makes it hard to produce more goods.
Since 1970, the poverty rate has largely fluctuated between:
A. 5 and 10 percent. B. 0 and 5 percent. C. 15 and 25 percent. D. 10 and 15 percent.
If marginal revenue is zero then total revenue is maximized
Indicate whether the statement is true or false
When managers of firms are given fixed salaries, which are not tied to the firm's profits, they generally put forth less effort than they otherwise would. This is an example of:
A. risk aversion. B. adverse selection. C. moral hazard. D. None of the answers are correct.