When the economy is experiencing high inflation and high unemployment at the same time, then it is experiencing:
a. stagnation.
b. deflation.
c. reflation.
d. stagflation.
e. innation.
d
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In the absence of government intervention, the marginal social cost of pollution abatement would equal its marginal social benefit
a. True b. False
Which of the following statements about a non-discriminating monopoly firm is correct?
a. It charges a price greater than its marginal cost. b. Its high prices generate inflation. c. It charges a price that maximizes its total revenues. d. As a price setter, it can ignore market demand. e. It has no incentive to produce each output level at the lowest possible cost.
Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $30 and market output of 220 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient price would higher than $30 while the efficient output would be less than 220 units. b. The efficient price would be higher than $30 while the efficient output would be greater than 220 units. c. The efficient price would be lower than $30 while the efficient output would be less than 220 units. d. The efficient price would be lower than $30 while the efficient output would be greater than 220 units.
The federal funds rate is the interest rate that
(a) the Federal Reserve charges the federal government on its loans (b) banks charge one another for short-term loans (c) banks charge their best customers (d) equalizes the yield on government bonds and corporate bonds (e) is equal to the inflation rate