If a production process created pollution, then the social cost curve would be:
A. below the market supply curve.
B. the same as the original market supply curve.
C. above the market supply curve.
D. zero.
C. above the market supply curve.
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A cartel
a. has one firm that acts as the price leader b. is a group of firms engaged in price discrimination c. acts like a monopoly d. involves competition between rival firms e. prices its output equal to marginal cost
If the Fed raises the reserve requirement on deposits from 15 percent to 20 percent, what would happen to the money supply?
a. It would decrease. b. It would increase. c. It would remain unchanged. d. It depends on the value of interest rates.
Give five examples of industries that are monopolistically competitive.
What will be an ideal response?
In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?
A. Higher government deficits will not raise equilibrium Gross Domestic Product (GDP) above the full-employment level. B. Deficit spending will decrease the nation's equilibrium real Gross Domestic Product (GDP). C. Equilibrium real Gross Domestic Product (GDP) will increase beyond the full-employment level and there will also be an inflationary effect. D. The government's deficit spending will increase equilibrium real Gross Domestic Product (GDP).