If a monopolist faces entry by a potential rival, investing to lower its marginal cost
A) is a credible way to deter entry.
B) is not a credible threat.
C) is credible but will not deter entry.
D) will not occur, even when there are no barriers to entry.
A
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The Phillips curve trade-off relationship implies that
A) there is no relationship between inflation and unemployment, at least in the long run. B) the government can fine-tune the economy and generate both the natural rate of unemployment and zero inflation. C) the government can fine-tune the economy and pick the most preferred combination of unemployment and inflation. D) low unemployment can be obtained only by generating rapidly increasing inflation.
The model: yt = 
0 +
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yt - 1+ 
1zt -1 +vt, where vt = ut- ut -1 represents a:
A. finite distributed lag model.
B. simultaneous equations model.
C. rational distributed lag model.
D. vector error correction model.
Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect
A) the labor force participation rate to fall. B) the unemployment rate to fall. C) the unemployment rate to rise. D) no change in the unemployment rate or labor force participation rate.
Which of the following statements about public goods is not true?
A. They are only produced by government agencies. B. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them. C. They will be under supplied by the private sector. D. They bestow collective benefits on members of society.