The argument that when policy changes, people's behavior changes so that historical relationships between macroeconomic variables will no longer hold is known as
A. the policy irrelevance hypothesis.
B. the Lucas critique.
C. the Phillips curve.
D. hysteresis.
Answer: B
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When negative externalities from production exist, the deadweight loss from a competitive market may be larger than with a monopoly
What will be an ideal response?
The ultimate authority of a corporation Belongs to the
A. CEO.
B. Board of directors.
C. CFO.
D. None of these choices are correct.
A firm's marginal cost is the increase in its total cost divided by the increase in its
A) quantity of labor. B) average cost. C) output. D) average revenue.
If only two people are trading their endowments and no production is possible, then the equilibrium they reach will
A) be on their contract curve. B) result in unequal marginal rates of substitution for the two people. C) result in one person being worse off than with his or her endowment. D) All of the above.