In practice, it is difficult to keep inflation and output from fluctuating when aggregate expenditures change because:
A. changes in consumer or business confidence can be very difficult to recognize as they are occurring.
B. changes in interest rates do not have an immediate impact on the economy.
C. it takes time for policymakers to recognize that shifts have occurred.
D. all of the answers given are correct.
Answer: D
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Black-market prices are below equilibrium prices because sellers want to sell large quantities
a. True b. False Indicate whether the statement is true or false
When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private costs. B. lower when buyers consider social costs. C. lower when buyers only consider private costs. D. None of these statements is true.
How did Microsoft defend its case concerning the company's required installation of Microsoft Internet browsers with all installations of their operating systems?
(A) The browser could not be sold separately. (B) The browser worked best with their operating system. (C) The browser had no profit making potential as a separate product. (D) The browser was not part of the operating system.
The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
With an export subsidy of $20 per bushel, the net loss in national well-being as a result of the export subsidy is
A. $500 million. B. $200 million. C. $2.2 billion. D. $300 million.