The different effects of fiscal and monetary policy in an open economy with mobile capital hinges on their different effect on
a. price levels.
b. interest rates.
c. the money supply.
d. real GDP.
b
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Consider the stock of ocean tuna which is massively overfished. It is rational for an individual to exploit the resource rather than to conserve the stock because
A) the marginal private benefit of harvesting tuna is lower than the marginal social benefit of harvesting it. B) the marginal private cost of harvesting the fish is lower than the marginal social cost. C) the marginal social cost of harvesting the fish is lower than the marginal private cost. D) the marginal private benefit of harvesting tuna is higher than the marginal social benefit of harvesting it.
The tendency of many different economic variables to have regular and predictable patterns over the business cycle is called
A) persistence. B) comovement. C) periodicity. D) recurrence.
For automobile demand in the U.S., the income response tends to be larger in the:
A. The income response is the same in the long run and the short run. B. long run. C. We do not have enough information to answer this question. D.short run.
The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.