The theory that monetary policy conducted on a discretionary, day-by-day basis leads to poor long-run outcomes is referred to as the
A) adverse selection problem.
B) moral hazard problem.
C) time-inconsistency problem.
D) nominal-anchor problem.
C
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Which of the following would be directly counted in U.S. GDP for 2015?
A) a 2015 Mini Cooper, built in Oxford, England, and sold to a computer programmer in San Jose, California B) a 1957 Chevy Bel Air convertible sold by its original owner to a car collector in Nashville on March 1, 2015 C) a 2015 Harley-Davidson Softail Deluxe, built in Pennsylvania, and sold to a kindergarten teacher in Moose Jaw, Saskatchewan, Canada D) a Tesla car battery, built in 2014 in California, to be installed in a new 2015 Tesla Model S
If the market price is above a firm's average cost at the quantity produced
A) the firm operates and makes a profit. B) the firm operates and make zero economic profit. C) the market price of the firm's inputs will rise. D) total profit is maximized.
If total spending exceeds total output, then
A. inventory levels will rise. B. inventory levels will remain constant. C. inventory levels will fall. D. output will eventually decrease.
Table 28.2 Firm AFirm BFirm CFirm DExternal Costs$0$________175$________Private Costs400250175200Social Costs________350$________250In Table 28.2, which firm has the greatest difference between social and private costs?
A. Firm A. B. Firm B. C. Firm C. D. Firm D.