As long as wages and prices are flexible, an anticipated change in the money supply will lead to an increase in
A) the unemployment rate.
B) industrial production.
C) nominal income.
D) real wages.
C
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For the period 1947-2012 in the United States, the price level was
A) acyclical. B) bicyclical. C) procyclical. D) countercyclical.
The superstar effect is that
A) the supply of superstars is more elastic than that for average players. B) the labor market cannot create equilibrium wages for the best players. C) the demand for a few players is relatively greater than the demand for most other players. D) none of these choices.
Which of the following represents the best government policy to reduce the deadweight loss associated with a monopolistically competitive market?
a. The government should regulate firms in a manner similar to natural monopolies. b. The government should encourage more firms to enter the industry because without government intervention, there are likely to be "too few" firms. c. The government should encourage some firms to exit the industry because without government intervention, there are likely to be "too many" firms. d. There is no government policy that can reduce deadweight loss without creating other problems.
Refer to the diagram. If actual production and consumption occur at Q 1 :
A. efficiency is achieved.
B. consumer surplus is maximized.
C. an efficiency loss (or deadweight loss) of b + d occurs.
D. an efficiency loss (or deadweight loss) of e + d occurs.