Economists who favor policy activism argue that the United States economy is NOT always in equilibrium because
A. the national debt is too large.
B. the markets are over regulated.
C. wage and price rigidities exist.
D. the Federal Reserve's monetary policy is too restrictive.
Answer: C
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Which characteristic is associated with monopolistic competition?
A) collusion B) product differentiation C) small number of firms D) awareness of rival firms in the market
How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
a. The demand for beef would increase, increasing beef prices. b. The demand for beef would decrease, decreasing beef prices. c. The supply of beef would increase, decreasing beef prices. d. The supply of beef would decrease, increasing beef prices.
Which of the following is a possible rationing device?
A) dollar price B) first-come-first-served C) brute force D) a and b E) a, b, and c
Based on the graph showing the effects of an investment tax credit or a technological change, eliminating an investment tax credit would ______.
a. create a higher equilibrium quantity of saving and investment
b. create a lower equilibrium quantity of saving and investment
c. have no influence on the equilibrium quantity of saving and investment
d. drive the equilibrium quantity of saving and investment to zero