theory of scale of the market – Hire Academic Expert

. Who developed the theory of scale of the market?

a. Joseph Schumpeter

b. Milton Friedman

c. Adam Smith

d. John Maynard Keynes

2. The notion that innovation is promoted by the competitive desire to break production monopolies is known as creative destruction. ____________ (True/ False

3. Which of the following may influence technological progress?

a. The scale of the market

b. Monopolies

c. Research and development spending

d. All of the above

4. A policy of not enforcing patents or copyrights would ____________ the incentive to be innovative

171.Most economists believe that discretionary fiscal policy should be used sparingly because of the risk of:

A)budget deficits.

B)lags in adjusting policy, so that policies designed to fight a recession may end up intensifying an inflationary gap.

C)budget surpluses.

D)sacrificing equity for efficiency.

172.The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

A)it cannot be effective.

B)of policy lags.

C)it always destabilizes the economy.

D)of the risk of government waste.

173.The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

A)monetary policy is always more effective.

B)it always requires higher taxes.

C)lags in adjusting to fiscal policy can make it counterproductive.

D)of the risk of government waste.

174.Discretionary fiscal policy may be counterproductive because:

A)the countercyclical nature of such policies sometimes reduces their effectiveness.

B)in the short run, only monetary policy is effective.

C)increases in the government budget deficit affect economic growth in the long run.

D)the various lags in fiscal policy mean that it may take effect when the economy has already recovered.

175.According to the Great Moderation consensus today, an unemployment rate of 6% when the natural rate is 4.5% should be countered by:

A)decreases in government spending.

B)increases in tax rates.

C)increases in the rate of growth of the money supply.

D)decreases in the rate of growth of the money supply.

176.The Great Moderation consensus among macroeconomists is described by all of the following EXCEPT that:

A)monetary policy should play the main role in stabilization policy.

B)the central bank should be independent of politics.

C)discretionary fiscal policy should be used sparingly.

D)monetary policy is the only way to get out of the liquidity trap.

177.Nearly all economists agree that central banks should:

A)be subject to political control.

B)be elected by voters.

C)be independent.

D)play a minor role in the economy.

178.Which of the following is a point of the Great Moderation consensus?

     I. Monetary policy should be the main stabilization policy.

     II. The central bank should be independent of political influence.

     III. Discretionary fiscal policy should be used sparingly.

A)I only

B)II only

C)III only

D)I, II, and III

179.Which of the following statements is TRUE of the state of modern macroeconomics?

A)There is much more consensus than disagreement among economists.

B)Inflation targeting and asset price management are incompatible duties for a central bank.

C)Congress indirectly controls the Fed and monetary policy through its annual budget allocations.

D)The Great Recession heightened the areas of disagreement among macroeconomists over key policy questions.

180.A very low rate of inflation during a recession can lead to:

A)a liquidity trap, which makes monetary policy ineffective.

B)a liquidity trap, which makes monetary policy effective.

C)government budget deficits.

D)government budget sur