Politicians have an incentive to favor short-run policies because _____
a. because voters suffer from myopia
b. of special interests
c. they may be voted out of office before long-run policies bear fruit
d. of rational ignorance
c
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Diseconomies of scale is
A) a short-run phenomenon. B) the result of decreasing marginal returns. C) a long-run phenomenon. D) the result of increasing marginal returns. E) possible only when the firm's plant size is fixed.
What is the "invisible hand"?
What will be an ideal response?
Which of the following statements is correct? I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards. II The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities.
A) I only B) II only C) Both I and II D) Neither I nor II
One thing economists do to help them understand how the real world works is
a. make assumptions. b. ignore the past. c. try to capture every aspect of the real world in the models they construct. d. All of the above are correct.