The following graph depicts demand. 
The price elasticity of demand at point B is:
A. 1/3.
B. 3/4.
C. 4/3.
D. 3.
Answer: C
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In the long run, perfectly competitive firms will exit the market if the price is
A) higher than average variable cost. B) equal to average total cost. C) less than average total cost. D) equal to average fixed cost. E) equal to marginal revenue.
When banks hold excess reserves because they don't see good lending opportunities, _____
a. contractionary monetary policy is negatively affected b. expansionary monetary policy is negatively affected c. expansionary monetary policy is unaffected d. contractionary monetary policy is unaffected
American citizens planning a vacation abroad that would require foreign currency would welcome:
A. Depreciation of the dollar. B. Appreciation of the dollar. C. Appreciation of the foreign currency. D. Devaluation of the dollar.
The Monetary Control Act of 1980 extended the Fed's authority to:
A. impose required-reserve ratios on all depository institutions. B. control the discount rate. C. control the federal funds rate. D. carry out a massive federal bailout of failed savings and loan institutions.