If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation
b. a rapid movement toward lower unemployment and lower inflation
c. a slow movement toward higher unemployment and higher inflation
d. a slow movement toward lower unemployment and lower inflation
c
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The United States Mint is the only legal entity to produce circulating coinage for the United States. What are the barriers to entry, if any, that protect this firm from competition?
A) The United States Mint is a natural monopoly. B) The United States Mint has a government license to produce coinage. C) The United States Mint is a public franchise to produce coinage. D) The United States Mint has a patent or copyright to produce coinage.
The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve is downward sloping and the supply curve is upward sloping. B) demand curve for halogen bulbs is horizontal. C) demand curve for halogen bulbs is vertical. D) supply curve of halogen bulbs is horizontal.