One of the strongest arguments against active stabilization policy is
a. that recognition lags make timely intervention very difficult.
b. the economy corrects itself very slowly.
c. the inability of economic theory to suggest appropriate policy.
d. the difficulty of obtaining agreement on monetary policy.
a
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The Clayton Act of 1914 prohibits ________ if it substantially lessens competition or creates a monopoly
A) people from serving on the board of directors of competing firms B) contracts that force other goods to be bought from the same firm C) both of the above D) neither of the above
A rational decision maker will take only those actions for which the expected marginal benefit
a. is positive b. is at its maximum level c. is greater than or equal to the expected marginal cost d. is less than the expected marginal cost e. exactly equals the expected marginal cost
Three different economies have made choices about the production of capital goods. Which of the following is most likely to produce the greatest growth in the production possibilities curve (PPC)?
a. Less production of capital goods than what is needed to replace worn-out capital. b. Greater production of capital goods than what is needed to replace worn-out capital. c. Capital goods are produced at rate needed exactly to replace worn-out capital. d. More production of consumption goods that replace worn-out capital.
A good example of a monopolistic competitive industry is
A. the federal highway system B. wheat farms in the United States. C. the four major textbook publishers together with nearly 90 percent of industry sales. D.the country music industry.