The "deadweight loss" from a monopoly refers to
a. the portion of a monopolist's profits that are above the competitive profit level.
b. the increase in price due to the monopolization of a market.
c. the inefficient use of factors of production by a monopoly.
d. the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.
d
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When policy changes are temporary, then:
a. exchange rates do not change. b. expectations do not change. c. interest rates do not change. d. expectations can change based on results.
If a bank's desired reserve-deposit ratio is 0.33 and it has deposit liabilities of $100 million and reserves of $50 million, it:
A. has the correct amount of reserves and outstanding loans. B. has too few reserves and will reduce its lending. C. has too many reserves and will increase its lending. D. should increase the amount of its reserves.
Which of the following will LEAST likely generate positive external effects to society?
A. education B. requiring drivers to undergo a test for alcohol consumption C. a comic book D. health care
If business taxes are reduced and the real interest rate increases:
A. consumption and saving will necessarily increase. B. the level of investment spending might either increase or decrease. C. the level of investment spending will necessarily increase. D. the level of investment spending will necessarily decrease.