Opponents of rule-determined policies might point out that ________
A) markets self-correct quickly so rules become obsolete
B) unforeseen changes in the structure of the economy may make a rule obsolete
C) policies that kick in at the wrong time may lead to undesirable results
D) all of the above
E) none of the above
B
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If marginal utility is positive, then total utility is:
a. constant. b. negative. c. increasing. d. decreasing. e. zero.
Open market sales of bonds by the Federal Reserve reduce the money supply and
a. reduce aggregate expenditures b. increase real aggregate expenditures c. are helpful in monetizing the federal debt d. stimulate purchases of consumer durables e. stimulate spending at many levels
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
If Moe moves from Point A to point C, his grade in Physics will go down by ________ his grade in economics.
A. more than the decrease in B. more than the increase in C. less than the decrease in D. less than the increase in
A policy maker has argued for higher taxes on gasoline to reduce the negative externalities associated with driving. This policy will lead to a relatively ________ reduction in driving if demand is ________.
A. small; perfectly elastic B. small; relatively inelastic C. large; relatively inelastic D. large; perfectly inelastic