In Figure 15.3, the Fed can change the equilibrium interest rate from 2 percent to 6 percent by
A. Reducing the discount rate.
B. Selling bonds in the open market.
C. Decreasing the reserve requirement.
D. Buying bonds in the open market.
Answer: B
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Many public utilities are permitted to operate as monopolies because they enjoy economies of large-scale production.
Answer the following statement true (T) or false (F)
Which of the following products allows the seller to identify different groups of consumers (segment the market) and practice price discrimination?
A) clothing items sold through Macy's Department Store B) a cafe latte sold at Starbucks C) tickets to matinee shows at a movie theatre D) a hamburger sold at Burger King
To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the
A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy.
The cost to a firm of producing one more unit of output
A) usually exceeds the firm's price. B) is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium. C) usually equals the firm's price for monopolistically competitive firms. D) is the firm's marginal cost.