One surprising insight from viewing policy as a "game" is that
A) central bankers should project an image of being conservative on economic policy matters, regardless of their personal views.
B) it is more difficult to control inflation when the central bank is highly independent.
C) uncertainty over the impact of policy makes little difference in designing an optimal policy.
D) money growth has little or no impact on inflation in the long run.
E) decreasing money growth may substantially increase the rate of inflation in the long run.
A
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The equilibrium rate of interest in the market for money is determined by the intersection of the
A. supply-of-money curve and the asset-demand-for-money curve. B. supply-of-money curve and the total-demand-for-money curve. C. investment-demand curve and the total-demand-for-money curve. D. supply-of-money curve and the transactions-demand-for-money curve.
Which of the following makes it difficult to regulate a monopolistically competitive market?
A. It is difficult to assess the costs. B. It may stifle innovation if firms can’t make economic profit. C. There are many firms with different costs of similar products. D. All of the above are true.
Economies of scale imply that within some range a firm can increase the size of operation and
a. total cost will decrease. b. fixed cost will decrease. c. average total cost will decrease. d. average total cost will increase. e. average variable cost will decrease.
Global resource demand has:
A. remained relatively constant because increases in population have been offset by declining consumption per person. B. declined because of technological progress. C. remained constant because population growth and increased consumption per person have been offset by technological progress. D. increased because population growth and increased consumption per person have more than offset reduced demand due to technological progress.