The answer is: "Policymakers are not aware of changes in the economy as soon as they happen." What is the question?
A) What is the wait-and-see lag?
B) What is the data lag?
C) What is the effectiveness lag?
D) What is the transmission lag?
E) none of the above
B
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One way a government can eliminate a market failure
A) is to regulate the price so that it equals marginal cost. B) is to implement a price floor equal to marginal cost. C) is to regulate the price so that it is below average cost. D) None of the above solutions will eliminate a market failure.
When facing a 50% chance of receiving $50 and a 50% chance of receiving $100, the individual pictured in Figure 5.2
A) would pay a risk premium of 10 utils to avoid facing the two outcomes. B) would want to be paid a risk premium of 10 utils to give up the opportunity of facing the two outcomes. C) would pay a risk premium of $7.50 to avoid facing the two outcomes. D) would want to be paid a risk premium of $7.50 to avoid facing the two outcomes. E) has a risk premium of 10 utils.