In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A) increase.
B) decrease.
C) become negative.
D) not change.
A
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The reference base period for the CPI has an index number of
A) 100. B) 10. C) 1,000. D) 0. E) 1.
Which of the following will shift the demand for the euro to the right?
A) expectations among speculators that the price of the euro will rise in the future B) an increase in incomes in countries that buy goods from the European Union C) an increase in interest rates in the European Union D) All of the above will shift the demand for the euro to the right.
The Big River Power Company is a regulated monopolist with pricing structured such that the stockholders receive a "fair" rate of return based on the firm's unit costs. Can economic thinking predict how the company executive offices are likely to be furnished? Given a choice between Hawaii and downtown Cleveland (20 miles away), where would we expect the Board of Directors to meet?
Bank examiners are _____.
(A) More interested in regulating the overall money supply than the net worth of member banks. (B) Required to schedule with banks when they plan to visit. (C) Authorized to force banks to sell off investments that they consider excessively risky. (D) Only permitted to label a bank as a "problem bank" if the institution has excessive risks.