Suppose the figure below illustrates the demand curve facing a monopolist. 
Suppose this firm maximizes its profits by charging a price of $8 per unit. This implies that the firm's:
A. marginal cost is $0.
B. marginal cost is less than $8.
C. marginal cost is $8.
D. average total cost is $8.
Answer: A
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Perishable goods such as milk or fruit are never used as money, because they cannot function as a
A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange.
Which of the following is an example of the U.S. government's use of a "command-and-control" approach to reducing pollution?
A) In 1990 Congress approved measures designed to reduce sulfur dioxide emissions to 8.5 million tons annually by 2010. B) The government issued electric utilities tradable emission allowances in order to reduce emissions of nitrogen oxide. C) In the 1980s the U.S. government required the installation of catalytic converters to reduce emissions from all new automobiles. D) The U.S. government imposed a tax on electric utilities to reduce damages from acid rain.
According to Keynes, the key difference between money and bonds is that
A) money is an asset. B) bonds are an asset. C) money is less risky. D) bonds are tax exempt.
The AD curve can be shifted by:
A. both fiscal and monetary policy. B. monetary policy only. C. fiscal policy only. D. neither fiscal nor monetary policy.