According to the monetarist transmission mechanism, a decrease in the supply of money will result in
A) individuals initially holding excess bonds.
B) individuals initially holding excess money.
C) a leftward shift in the aggregate demand curve.
D) a and c
C
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Much of the research on the minimum efficient scale suggests that for many firms the LRAC curve is:
A) downward sloping over the relevant range of output. B) upward sloping over the relevant range of output. C) U-shaped. D) flat over a relatively large range of output levels.
Moral hazard is the term used to describe the situation in which:
a. a consumer may buy a low-quality product. b. consumers receive a lower price because of a mistake on the part of the clerk. c. a consumer is being compensated for a defective product. d. people may change their behavior after they have signed a contract or agreed to a specified behavior. e. people want to change their behavior after they have signed a contract or agreed to a specified behavior but are unable to do so.
Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would
a. rise and exports of other industries would increase. b. rise and exports of other industries would decrease. c. not change, exports of other industries would increase. d. not change, exports of other industries would decrease.
Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary. B. wants are unlimited and resources are scarce, so trade-offs have to be made. C. wants are limited and resources are unlimited, so trade-offs are unnecessary. D. wants are limited and resources are unlimited, so trade-offs have to be made.