If an inflationary boom exists, the appropriate fiscal policy is to:
a. increase the budget deficit.
b. increase government spending and hold taxes constant.
c. decrease government spending and/or raise taxes.
d. hold government spending constant and decrease taxes.
c
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Blanca would prefer a certain income of $20,000 to a gamble with a 0.5 probability of $10,000 and a 0.5 probability of $30,000. Based on this information:
A) we can infer that Blanca neutral. B) we can infer that Blanca is risk averse. C) we can infer that Blanca is risk loving. D) we cannot infer Blanca's risk preferences.
Which of the following is an example of a local monopoly as compared to a national or international monopoly?
a. a restaurant at a rural crossroads b. Alcoa during the 19th century c. De Beers Consolidated Mines d. AT&T e. U.S. Postal Service