Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential
Answer: B
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OPEC is an example of a:
A. cartel. B. duopoly. C. monopoly. D. monopsony.
To prevent shortages of cash during a crisis, the Fed: a. saves up cash in bank vaults around the country and the world. b. reduces liquidity in the economy so that more cash can be saved. c. sells U.S. government securities to commercial banks
d. demands interest payments on reserves held at the Fed. e. increases the discount rate.
Which of the following encourage(s) entrepreneurs to innovate?
a. the patent system b. the enforcement of contracts by the courts c. private property rights d. All of the above are correct.
Which of the following environmental approaches is most appropriate when surveillance and enforcement is impractical?
a. direct controls b. emissions tax c. volunteerism d. tradable emission permits