Economists are concerned that a large cost to nations entering into a monetary union is:
A) the inability to collect taxes.
B) the inability to rescue banks or stimulate the economy via a lender-of-last-resort mechanism.
C) the tendency toward ever higher deficits.
D) sticky prices.
Ans: B) the inability to rescue banks or stimulate the economy via a lender-of-last-resort mechanism.
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Monetary policy actions are determined by the
A) Federal Open Market Committee. B) New York Federal Reserve Bank. C) President of the United States. D) U.S. Congress.
Downsizing can be represented by
a. moving to a point on the left along the LRATC curve b. moving to a different short-run ATC curve on the right c. remaining on the same short-run ATC curve d. a downward shift in the LRATC curve e. an upward shift in the LRATC curve
In long-run equilibrium in perfect competition, every firm is producing at minimum average cost
a. True b. False Indicate whether the statement is true or false
The defining characteristic of a natural monopoly is
a. constant marginal cost over the relevant range of output. b. economies of scale over the relevant range of output. c. constant returns to scale over the relevant range of output. d. diseconomies of scale over the relevant range of output.