Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?
A. OA
B. OB
C. OD
D. OC
Answer: D
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One result of an unanticipated reduction in aggregate demand would be that
A) fewer firms would be hiring. B) more firms would be hiring. C) there would be no change in hiring. D) the price level would rise.
Frictional unemployment refers to:
a. people who are out of work and have no job skills. b. short periods of unemployment needed to match jobs and job seekers. c. people who spend relatively long periods out of work. d. unemployment related to the ups and downs of the business cycle.
Commercial banks create money by: a. printing currency notes
b. charging processing fees on bank transactions. c. making loans out of excess reserves. d. investing in money market mutual funds.
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.