The problem of time lags in making policy changes is less acute for monetary policy than it is for fiscal policy
a. True
b. False
Indicate whether the statement is true or false
True
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Use the figure below, and the regular percentage change formula, to answer the following question: 
Assume that price decreases from $10 to $2. The price elasticity of supply is about
A. 0.35 and supply is inelastic. B. 1 and supply is unit-elastic C. 4 and supply is elastic. D. 1.25 and supply is elastic.
Suppose that you own a house. What is the opportunity cost of living in the house?
A) The opportunity cost is the rent you could have received from a tenant if you didn't live there. B) There is no opportunity cost unless you could set up a business in the house. C) There is no opportunity cost because you own the house. D) The opportunity cost is the cost of your monthly mortgage payment plus bills.
In an oligopoly with a collusive agreement, the total industry profits will be smallest when
A) all firms comply with the agreement. B) one firm cheats on the agreement and the other firms do not cheat. C) all firms cheat on the agreement. D) the firms act as a monopoly.
Which of the following would decrease the balance on the current account?
A) a decrease in imports B) a decrease in foreign direct investment C) a decrease in the amount of aid money the government sends abroad D) None of the above will decrease the balance on the current account.