The cross elasticity of demand between digital cameras and memory cards is likely to be:
A. Zero
B. A negative number
C. A positive number greater than 1
D. A positive number between zero and 1
B. A negative number
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Nominal GDP targeting ________
A) is consistent with a dual mandate B) has been adopted in more countries than have adopted inflation targeting C) is, compared to inflation targeting, easier both to implement and to explain D) is preferred strongly by "conservative" central bankers
In monopolistically competitive markets, free entry and exit suggests that
a. the market structure will eventually be characterized by perfect competition in the long run. b. all firms earn zero economic profits in the long run. c. some firms will be able to earn economic profits in the long run. d. some firms will be forced to incur economic losses in the long run.
Which of the following is not an argument used in favor of protectionism?
a. To preserve national security. b. To reduce prices paid by domestic consumers. c. To protect against "unfair" competition because of cheap foreign labor. d. To protect an "infant" industry. e. To protect domestic jobs.
Which of the following is NOT an implication of specialized investments that lead to increased transaction costs?
A. Underinvestment in specialized investments B. Opportunism and the hold-up problem C. Incentive contracts D. Costly bargaining