One’s opinion about the proper size of government should have nothing to do with one’s view on stabilization policy.
Answer the following statement true (T) or false (F)
True
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The unemployment rate never falls to ________________ percent.
a. three b. five c. zero d. one
In 1972, one could buy model rocket engines for $1.50 each. If those same engines cost $2.50 each today, then which pair of CPIs would make the engine prices in today's dollars the same for both years?
a. 60 in 1972 and 95 today b. 60 in 1972 and 120 today c. 90 in 1972 and 150 today d. 96 in 1972 and 154 today
If a firm's price-earnings ratio is relatively low, then it might be an indication that
a. the demand for the stock is relatively high. b. the supply of the stock is relatively low. c. people expect the firm's earnings to rise. d. people expect the firm's earnings to fall.
Which of the following distinguishes a natural monopoly from monopoly caused by ownership of a vital resource?
A. The natural monopoly has a marginal cost curve above its average cost curve at all levels of output, whereas the marginal cost in other monopolies is above average cost. B. The natural monopoly does not require any government intervention because it is only efficient to have one large firm supplying the market, but other monopolies do require government intervention to maintain efficiency. C. The natural monopoly has a downward-sloping long-run average cost curve as opposed to a U-shaped long-run average cost curve. D. The natural monopoly occurs with naturally occurring products like gold and diamonds, whereas other monopolies occur with man-made products.