The facts show that the political business cycle theory
A) does a good job of explaining monetary policy during presidential election years.
B) is unable to explain monetary policy during presidential election years.
C) doesn't generally support the political business cycle theory.
D) explains monetary policy best during years in which the President is running for reelection.
C
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Which of the following statements is correct about the concept of willingness to pay?
A) The willingness to pay is the lowest price that a buyer is willing to pay for an extra unit of a commodity. B) The willingness to pay for a commodity increases exponentially as the consumption of the commodity increases. C) The willingness to pay for a commodity increases linearly as the consumption of the commodity increases. D) If a consumer is consuming 10 units of a commodity and he is ready to pay $2 for the eleventh unit, his willingness to pay for the eleventh unit is $2.
The above table shows some cost data for Tracey's Tents. What is the marginal cost of the 3rd tent?
A) $25 B) $20 C) $70 D) $120
According to the Coase theorem, private parties can solve the problem of externalities if
a. the cost of bargaining is small. b. the initial distribution of legal rights favors the person being adversely affected by the externality. c. the number of parties involved is sufficiently large. d. All of the above are correct.
The rational-ignorance effect refers to which of the following scenarios?
What will be an ideal response?