In a circular-flow diagram, the saving and taxation "pipes" are carrying
A) injections to firms.
B) injections to households.
C) leakages from firms.
D) leakages from households.
D
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Refer to Table 8-21. Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016, using 2014 as the base year. Show your work
What will be an ideal response?
Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers. B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups. C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms. D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.
Testing for the random receipt of treatment
A) is not possible, in general. B) entails testing the hypothesis that the coefficients on W1i, …, Wri are non-zero in a regression of Xi on W1i, …, Wr. C) is not meaningful since the LHS variable is binary. D) entails testing the hypothesis that the coefficients on W1i, …, Wri are zero in a regression of Xi on W1i, …, Wr.
Tacit collusion occurs in industries that
a. are monopolistically competitive b. contain price leaders c. experience rapid technological change d. are regulated e. produce very differentiated products