In the long-run equilibrium in a perfectly competitive market,
A) the firms make an economic profit.
B) the firms' owners make a normal profit.
C) the average total cost is maximized.
D) marginal cost is at a minimum.
B
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Which of the following describes the degree of control that the Fed has over the money supply?
A) The Fed has substantial control over the money supply. B) The Fed has absolute control over the money supply. C) The Fed has no control of the money supply. D) The Fed is not concerned about the level of the money supply, and does not attempt to control it.
Disneyland price discriminates because
A) everyone loves going to The Happiest Place on Earth, so they'll pay whatever Disneyland wants to charge. B) children are cheaper to service, so Disneyland can charge lower prices for a children's ticket. C) only a certain number of people can get into Disneyland at any given time, limiting supply, and the market demand curve is nearly completely inelastic. D) local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.
The substitution effect can be defined as:
A. the change in consumption that results from a change in the relative price of goods. B. the change in consumption that results from increased effective wealth due to lower prices. C. the change in consumption that results from increased effective wealth due to getting a raise. D. the change in income that results from increased effective consumption due to lower prices
When an individual withdraws funds from a checking account the:
A. bank's balance sheet shrinks and so does the Fed's balance sheet. B. bank's balance sheet shrinks but the size of the Fed's balance sheet increases. C. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected. D. size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.