According to the idea of laissez faire
A. Markets lead to efficient economic outcomes
B. Business should not interfere in markets
C. Markets require govt intervention for efficiency
D. Markets lead to equilibrium
E. As much as possible, govts should not interfere with markets
Ans: E. As much as possible, govts should not interfere with markets
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The steeper the central bank reaction function, the ________ the central bank increases the interest rate in response to the current inflation rate being above the target inflation rate and the ________ the central bank decreases the interest rate in
response to the actual inflation rate being below the target inflation rate. A) more; more B) more; less C) less; more D) less, less
If the leading canned soup company introduces dozens of new flavors in order to dominate shelf space, the company is most likely trying to create a barrier to entry by
a. increasing the total investment needed to reach the minimum efficient size b. spending more on advertising than potential competitors can afford c. exploiting economies of scale d. crowding out the competition e. establishing an undifferentiated oligopoly