When policy makers base their actions on a rule there is
A) rationalization policy making. B) passive policy making.
C) rational expectations policy making. D) active policy making.
B
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Refer to Figure 4.1. All else equal, a decrease in the government's budget deficit will cause
A) a shift from S1 to S2. B) a shift from S2 to S1. C) a change in the interest rate from r2 to r1. D) a change in loanable funds from L2 to L1.
In many cities, the price of summer pops concerts has risen. In Charlotte, North Carolina, and Columbus, Ohio, for example, concerts that were once free now cost $5 . If there are only fixed costs and no variable costs nor marginal costs in an orchestra concert, what is the efficient price? Explain the reason why some people will find the efficient price unfair
Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets that can be produced, when all resources are fully employed. Production PossibilitiesGood A B C D E
Based on the above information
A. there is no trade-off between smartphones and tablets. B. the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets. C. the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones. D. the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets.
Under what conditions would firms be likely to support an industry-wide advertising ban?
What will be an ideal response?