"Politics is too often the thing that gets in the way of good economic policy being implemented." The economist who said this most likely
A) believes that fiscal policy is preferable to monetary policy when it comes to stabilizing the economy.
B) prefers discretionary monetary policy to rule-based monetary policy.
C) believes that there will be a lot of crowding out if government spending is increased.
D) prefers rule-based monetary policy to discretionary monetary policy.
D
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A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $4 and the marginal cost is $2 and the marginal benefit of producing Product B is $4 and the marginal cost is $6. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less B) less; more C) less; less D) more; more
A perfectly competitive firm will always maximize profits by producing where
a. per-unit costs are lowest. b. total costs and total revenue are equal. c. P = MC. d. P = AC.
The Chamberlin model has been criticized for all but which one of the following reasons?
A. The model adds little to the perfect competition conclusions. B. The concept of an industry group is ambiguous in the model. C. The model predicts no long-run profits but does not account for entry and exit in markets. D. Consumers are not as willing to switch from one product another for slight price changes.
A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the
A. asset demand for money. B. use of money as a medium of exchange. C. transactions demand for money. D. creation of fiat money.