A monopsony is an example of:
A. a buyer holding market power.
B. a seller holding market power.
C. an efficient market with no market power.
D. a single seller holding all market power.
A. a buyer holding market power.
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In your intermediate macroeconomics course, government expenditures and the money supply were treated as exogenous, in the sense that the variables could be changed to conduct economic policy to influence target variables,
but that these variables would not react to changes in the economy as a result of some fixed rule. The St. Louis Model, proposed by two researchers at the Federal Reserve in St. Louis, used this idea to test whether monetary policy or fiscal policy was more effective in influencing output behavior. Although there were various versions of this model, the basic specification was of the following type: ?ln(Yt) = ?0 + ?1?ln mt + ... + ?p?ln mt-p-1 + ?p+1?ln Gt + ... + ?p+q?ln Gt-q-1 + ut Assuming that money supply and government expenditures are exogenous, how would you estimate dynamic causal effects? Why do you think this type of model is no longer used by most to calculate fiscal and monetary multipliers? What will be an ideal response?
Which of the following is an example of price discrimination?
a. A Burger King in New York City charging more for a hamburger than a Burger King in Manhattan, Kansas. b. A clothing store offering shirts at ten dollars each or two for fifteen dollars. c. A movie theater charging lower ticket prices to children and senior citizens. d. A car dealer charging higher prices for cars with air conditioning.