As price increases, firms in a perfectly competitive market find that it is:
A. beneficial to produce fewer units of output.
B. more difficult to sell their product.
C. easier to sell their product.
D. beneficial to produce more units of output.
Answer: D
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What do the legislative and implementation lags have in common?
A) They are both more important for monetary than fiscal policy. B) They are both more important for fiscal than monetary policy. C) They are both harder to measure but less variable than the effectiveness lag. D) They both take place before the data and recognition lags. E) none of the above
If the game in Scenario 13.13 were not played sequentially,
A) the only equilibrium would be (R2,C1 ). B) the only equilibrium would be (R1,C2 ). C) the only equilibria would be (R2,C1 ) and (R1,C2 ). D) the only equilibria would be (R2,C1 ), (R1,C2 ) and a mixed strategy equilibrium. E) there would not be any equilibrium.
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If this family earned $50,000 in the workplace, the government payment to the family under this program would equal
a. $2,500 b. $1,000 c. $10,000 d. $1,500 e. zero
If exports of goods and services are $450 billion, imports of goods and services are $350 billion, unilateral transfers made by U.S. citizens to foreigners are $5 billion, and unilateral transfers made by foreigners to U.S. citizens are $4 billion, then the current account balance will be __________ billion.
A. +$101 B. -$101 C. -$99 D. +$91 E. +$99