For a monopolistically competitive firm
A. price is greater than marginal revenue at all levels of output except for the first unit.
B. price equals marginal revenue at all levels of output.
C. price is less than marginal revenue at all levels of output.
D. the demand curve is perfectly inelastic and marginal revenue is zero.
Answer: A
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Which of the following has been the most likely effect of the Fed's credit policy?
A) Banks and other financial institutions have taken more time to recover from the 2008-2009 financial meltdown. B) The scope of asymmetric information problems in the banking industry has reduced. C) The money multiplier and the link between the money supply and the economy have become unstable. D) The federal funds rate and the discount rate have dropped to negative levels.
Refer to Table 2-15. What is George's opportunity cost of cultivating a garden?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
By raising the legal reserve requirement, the Federal Reserve System
a. forces banks to hold funds from repaid loans as required reserves instead of lending the funds again b. creates many new lending opportunities for cash-strapped financial intermediaries c. actually creates new money because it allows more borrowers to come into banks to demand loans d. seeks to increase the potential money multiplier e. encourages member banks to loan more than what is legally feasible
In the analysis of potential GDP, labor and capital are considered
a. inputs. b. final goods and services. c. byproducts of economic growth. d. outputs.