If the Federal Reserve simultaneously sells government bonds in the open market and raises reserve requirements, the
a. money supply will increase.
b. money supply will decrease.
c. money supply will stay the same.
d. two tools will work against one another and the net effect on the money supply is uncertain.
B
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The use of a tariff provides monopoly protection since
A) it allows more imports into the country. B) it reduces competition from imports by raising the import price. C) it reduces exporters' profits. D) it expands tax credits.
If a perfect competitor's ATC curve is above its demand curve for every possible output the firm is
A. losing money in the short run. B. losing money in the long run. C. making a profit in the short run. D. making a profit in the long run.
Suppose the marginal revenue curve for a perfectly competitive firm intersects the average total cost curve at its minimum point. As the marginal revenue curve moves upward from that point along the marginal cost curve,
A. the profit-maximizing quantity decreases. B. the profit-maximizing quantity increases. C. the firm will choose not to produce to minimize its loss. D. the average fixed cost curve will shift upward.
If a monopolist produces to a point at which marginal revenue is greater than marginal cost then
A. profits will always be negative. B. the incremental cost of producing the last unit exceeds the incremental revenue. C. profits are being maximized. D. the incremental cost of producing the last unit is less than the incremental revenue.