Why might the consequences of imposing a tax on harmful fast foods not adhere to theory?
What will be an ideal response?
Preferences of people with different desires could be altered in unintended ways. All variables could not be controlled for.
Economics
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The brand name of a firm
A) has nothing to do with the profitability of a firm. B) has been considered irrelevant by economists since profits for a monopolistic competitive firm are zero in the long-run. C) relates to consumers' perception of product differentiation and to the market value of a firm. D) is important in the short-run but not in the long-run.
Economics
Under the adaptive expectations theory, expansionary monetary and fiscal policies designed to reduce the unemployment rate will be
a. ineffective in the long run. b. ineffective in the short run. c. noninflationary. d. all of the above.
Economics