Which of the following is not a benefit resulting from international policy coordination?
A) International policy externalities can be internalized.
B) It makes the most out of the limited tools central banks have to manage the economy.
C) Governments working together are often better positioned to withstand domestic objections to policies if they stand together.
D) All of the above are benefits.
D
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Which of the following is not an example of market failure?
a. Efficient equilibrium b. Extreme income inequality c. Lack of competition d. Externalities
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Acme Manufacturing: TC = 100 + 3Q Generic Industries: TC = 500 + 3Q When each firm is producing the same quantity, Acme's average total cost is:
A. lower than Generic's average total cost at some levels of output, and higher than Generic's average total cost at other levels of output. B. lower than Generic's average total cost. C. equal to Generic's average total cost. D. higher than Generic's average total cost.
A change in government purchases shifts the aggregate demand curve by an amount equal to the
A) change in consumption X marginal propensity to consume. B) change in government purchases X money multiplier. C) change in government purchases X spending multiplier. D) change in the spending multiplier X change in government purchases.
Price indexes like the CPI are calculated using a base year. The term base year refers to:
A. the first year that price data are available. B. any year in which inflation was higher than 5 percent. C. the most recent year in which the business cycle hit the trough. D. an arbitrarily chosen reference year.