According to real business cycle theory
A) monetary policy is driving business cycles.
B) Federal Reserve actions need to be watched closely.
C) technology shocks have a major role in business cycles.
D) cash-in-advance is necessarily to explain business cycles.
C
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Oligopolies exist and do not attract new rivals because
A) of barriers to entry. B) there can be no product differentiation. C) of competition. D) the firms keep profits and prices so low that no rivals are attracted.
Which of the following will cause a movement along the demand curve for shoes?
A) an increase in the price of socks B) an increase in income C) an increase in the price of shoes D) all of the above
Suppose Joe Rich owns his own company and does not pay himself a salary. This means the salary he could have earned in alternative employment is considered an implicit cost for the firm
a. True b. False Indicate whether the statement is true or false
If incomes are rising, in the market for a normal good,
a. its price will rise and the quantity exchanged will rise. b. its price will rise and the quantity exchanged will fall. c. its price will fall and the quantity exchanged will rise. d. its price will fall and the quantity exchanged will fall.