If people base their spending decisions more on permanent income than current income, then _____
Fill in the blank(s) with the appropriate word(s).
attempts to fine-tune the economy with temporary tax rate adjustments will be less effective.
You might also like to view...
The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has excess reserves of ________
A) $50 B) $500 C) $450 D) $2,500
A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company decides to sell the drug at $5,000 but requires the patients to purchase periodic blood testing from them for $5,000 . This is an example of
a. Tying b. Bundling c. Fraud, the company is not allowed to sell for any higher than the regulatory price d. Both A&B
In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. produce a good for which there are exact substitutes. B. produce a good which is standardized. C. price the good at marginal cost. D. earn a positive economic profit.
Consider a society that is producing inside its production possibilities frontier. This society could best achieve efficiency in its production of output by:
A. increasing the levels of wages and prices. B. producing relatively more capital goods and relatively fewer consumer goods. C. fully employing all available resources. D. distributing incomes more equally.