Everything else held constant, a decrease in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase
B) increase; increase
C) decrease; decrease
D) increase; decrease
B
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Because there are low barriers to entry in a monopolistically competitive market
A) there are many firms in the industry. B) they produce a homogeneous product. C) the firms are price takers. D) there is no non-price competition.
Which statement is true?
A. Most firms in the United States are perfect competitors. B. In order for perfect competition to exist there must either be many firms in the industry or all firms must make an identical product. C. The perfect competitor never produces at the minimum point of her ATC. D. None of the statements are true.
An increase in total revenue will result if
A. demand is inelastic and price increases. B. demand is unitary elastic and price decreases. C. demand is elastic and price increases. D. demand is inelastic and price decreases.
Private costs are
A. costs borne solely by the individuals who incur them. B. costs borne by private members of society rather than governmental bodies. C. external costs borne by private firms. D. explicit costs rather than implicit costs.