The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
a. goods were not subject to price controls.
b. the government imposed a price ceiling below the equilibrium price.
c. the government imposed a price ceiling above the equilibrium price.
d. all of these.
b
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Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
What will be an ideal response?
When a firm creates negative externalities by polluting, in order to achieve the socially efficient outcome: a. the firm's production should be prohibited
b. the firm's production should be increased and the price of its output should be decreased. c. the firm's production should be increased and the price of its output should be increased. d. the firm's production should be reduced and the price of its output should be increased.
Who is best known for arguing about the long and variable lags of monetary policy?
A) Friedman B) Keynes C) Phillips D) Greenspan E) Bernanke
An increase in Switzerland's interest rate and an increase in Switzerland's price level relative to U.S. price level have the same effect on the exchange rate between the two countries.
Answer the following statement true (T) or false (F)