Some economists believe that policymakers should avoid stabilization policy because
A. lags make the policy impact unpredictable.
B. no tax cut ever stimulated demand.
C. stabilization policies are rarely signed into law.
D. it never works.
Answer: A
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The U.S. distribution of income was more unequal in 1990 and 1980 than in 1970.
Answer the following statement true (T) or false (F)
The Organization of Petroleum Exporting Countries (OPEC) operates as an international cartel. If the cartel were to hire a consulting firm to monitor the production rates of member countries, the economic reason for this monitoring is to:
A. make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price. B. detect those member countries that are depressing prices by producing more than their assigned quotas. C. make sure all the member countries produce at least their quotas so that there will be no oil shortage. D. make sure that each member country is producing at an output level at which price equals marginal cost.
Goods differ on the basis of whether their consumption is rival and excludable. Explain the terms "rival," nonrival," "excludable," and "nonexcludable" as they are used to define goods
List the four categories of goods and define these categories in terms of rivalry and excludability.
The domestic currency of a country depreciates in value when: a. there is an increase in the foreign currency price of the domestic currency. b. its value falls in relation to another currency
c. the government of the country revaluates the domestic currency. d. its value rises in relation to another currency. e. there is a fall in the domestic demand for foreign currency.