Which of the following best describes a policy of inflation targeting?
A) It's an inflexible rule that requires the central bank to always achieve a specified inflation rate.
B) It allows monetary policy to focus on inflation and inflation forecasts except in the case of severe recession.
C) It allows the central bank the flexibility of setting different inflation targets each year.
D) It requires central banks to target current inflation rather than inflation forecasts.
B
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Of the following, consumer surplus is largest for
A) a perfectly competitive industry. B) a single-price monopoly. C) any price-discriminating monopoly. D) a perfectly price-discriminating monopoly.
The monopolist's input demand curve is equal to its
A) variable cost curve. B) marginal cost curve. C) average cost curve. D) marginal revenue product curve.
The 1986 Safe Drinking Water Act Amendments
a. reduced federal controls on drinking water b. included a ban on lead pipe and solder in public drinking water systems c. were proposed but never passed by Congress d. comprise the rulings that currently govern U.S. drinking water
Which of the following would cause a rightward shift in the labor demand curve?
a. A rise in the demand for leisure hours. b. A rise in the wage rate. c. A rise in workers' marginal productivity. d. A decline in workers' nonlabor incomes.