Which monetarist idea has been absorbed into mainstream macroeconomics?
A. The net export effect has a stronger effect on fiscal policy than monetary policy
B. Cuts in tax rates significantly increase the productive capacity of the economy over the historical averages
C. Excessive growth in the money supply over long periods leads to inflation
D. The Federal funds rate is a more important monetary target than the money supply
C. Excessive growth in the money supply over long periods leads to inflation
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A patent is a government-imposed entry barrier because
A) it is a key input owned by the firm that is granted the patent. B) it allows a firm to achieve economies of scale. C) it gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented. D) it limits the quantity of a good that can be imported into a country.
Which of the following products allows the seller to identify different groups of consumers (segment the market) and practice price discrimination?
A) clothing items sold through Macy's Department Store B) a cafe latte sold at Starbucks C) tickets to matinee shows at a movie theatre D) a hamburger sold at Burger King