Politics enters into the determination of economic policy in a negative way because:
A. it does not take market failures or failures of market outcome into account in formulating policy.
B. political decisions do not always reflect the will of society.
C. political decisions always reflect the will of society.
D. it takes market failures and failures of market outcome into account in formulating policy.
Answer: B
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Propecia was developed to treat mild to moderate male pattern hair loss in men. Marco has hair loss and he is willing to pay any amount of money to be able to buy this drug each month. Marco's price elasticity of demand is ________
A) perfectly inelastic B) perfectly elastic C) elastic D) inelastic
Which one of the following is NOT a determinant of demand?
A) prices of related goods B) cost of inputs in production C) income D) future price expectations
The Federal Reserve
a. requires little time to change policy and aggregate demand responds quickly.
b. requires little time to change policy but aggregate demand responds slowly.
c. usually requires a substantial time to change policy but aggregate demand responds quickly.
d. usually requires a substantial time to change policy and aggregate demand responds slowly.
In a typical oligopolistic market, there are
A) no barriers to entry and firms sell homogeneous products. B) substantial entry barriers, and firms are too large to strategically interact with each other. C) substantial barriers to entry and firms interact strategically with each other. D) no barriers to entry and firms interact strategically with each other. E) no barriers to entry, but firms sell differentiated products.