When a second firm enters a monopolist's market:
A. the former monopolist's average cost decreases as its output level decreases.
B. the demand curve facing the former monopolist shifts to the right.
C. the market price falls.
D. None of these
Answer: C
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Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases
Sandy is a big Star Wars fan and buys a $20 ticket a week in advance to the premier of the new movie. After arriving at the theater, she realizes she left the ticket at home and doesn't have time to return home and get it. Sandy can buy another ticket for $20. She decides not to because seeing the movie isn't worth $40 to her. This is an example of:
A. rational behavior because she values the movie less than $40 B. irrational behavior because she really values the movie more than $40 C. irrational behavior because the initial $20 is a sunk cost. D. rational behavior because it is a commitment device to never forget a ticket at home again.
According to the World Bank’s system, countries in the slow growth club have a GDP growth of
a. 5% or more per year. b. 2% or less per year. c. 2% or more per year. d. 5% or less per year.