If there is a shortage
A. consumers will drive down the price further.
B. firms will drive up the price to enhance profits.
C. the price will decline to the equilibrium level.
D. fewer producers want to sell the product because it is too scarce.
Answer: B
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Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. 
At this monopolist's profit-maximizing level of output, its total revenue equals the area:
A. 0FLE. B. ELJB. C. 0HNC. D. 0FJB.
_________ are statements that ascribe blame or judge others. They can lead to arguments
a. I-messages b. You-messages c. Theymessages d. Expert messages
Which of the following is a reason why a bank may hold excess reserves?
a. It earns more interest on reserves than on loans. b. It is required to do so. c. It may want flexibility to increase its loans if interest rates rise in the near future. d. Banks often expect a drop in the required reserve ratio. e. Banks often expect a rise in the required reserve ratio.
Profits will be maximized when the slope of the total revenue curve and the slope of the total cost curve are equal
a. True b. False Indicate whether the statement is true or false