Time lags that often erode effectiveness of monetary and fiscal policy measures represent
A. the foreign response to price changes.
B. delays in the response of the economy to stabilization policy.
C. the change in export and import prices.
D. the change in exchange rates.
Answer: B
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For a cost function C = 100 + 10Q + Q2, the average fixed cost of producing 10 units of output is:
A. 5. B. 1. C. 10. D. None of the answers are correct.
An economy that does NOT trade with the rest of the world is a(n)
A. open economy. B. command economy. C. closed economy. D. trade economy.
Monopolies and oligopolies both erect barriers to entry through the use of
A. advertising. B. price cutting. C. patents. D. franchising.
The financial crisis in the United States in 2007-2009 brought about all but which of the following changes:
A. a run on money-market mutual funds. B. the placement of the two government-sponsored enterprises for housing finance into conservatorship. C. an increase in the deposit share of the top four U.S. commercial banks. D. a rise in the number of unit banks.