Oligopolists use advertising as a way of differentiating their products
a. True
b. False
Indicate whether the statement is true or false
True
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If too many high risk policyholders migrate to a comprehensive health insurance plan which covers a wide range of treatments, the price of a policy must increase
Indicate whether the statement is true or false
The following equations describe a Keynesian model of the economy.Cd = 500 + 0.5(Y - T) - 100rId = 350 - 100rL = 0.5Y - 200i?e = 0.05, G = T = 200, 
= 1850M = 3560(a)Find the full-employment equilibrium values of the real interest rate, consumption, investment, and the price level.(b)Suppose government purchases decline to 175, with no change in taxes. What happens to the real interest rate, output, consumption, and investment in the short run (in which the price level is fixed)? What happens in the long run to the real interest rate, consumption, investment, and the price level?(c)Suppose instead that government purchases rise to 225, with no change in taxes, starting
from the equilibrium in part (a). What happens to the real interest rate, output, consumption, and investment in the short run (in which the price level is fixed)? What happens in the long run to the real interest rate, consumption, investment, and the price level? What will be an ideal response?
Which of the following is the principal mechanism used by the Federal Reserve to directly alter the reserves of the banking system?
A. Changes in the required reserve ratio. B. Open market operations. C. Changes in the discount rate. D. Foreign exchange operations.
In the short run, total variable cost
A) includes the cost of capital. B) includes the cost of labor. C) includes both the cost of capital and of labor. D) does not change when production changes. E) is positive when output is zero.