If the demand curve for a firm is downward-sloping, its marginal revenue curve
A) will lie above the demand curve.
B) will lie below the demand curve.
C) is the same as the demand curve.
D) is horizontal.
Answer: B
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Refer to the figure above. What is the quantity effect of a price reduction from $6 to $4?
A) $600 B) $800 C) $1,000 D) $1,200
Chapter 15 suggests that the Community Reinvestment Act (CRA) provides an example of
A) bad intentions and bad unintended consequences. B) good intentions and bad unintended consequences. C) bad intentions and good unintended consequences. D) good intentions and good unintended consequences.
As a means of gaining monopoly power, holding companies were preferable to gentlemen's agreements and pooling because
a. holding companies did not have an adverse impact on employment. b. holding companies were able to reduce competition from imported goods. c. holding companies were legal in most states. d. holding companies were not subject to corporate profits taxes.
In the aggregate expenditures model, if aggregate expenditures (AE) equal $4 trillion and GDP equals $3 trillion, then:
a. inventory depletion equals ?$1 trillion. b. inventory accumulation equals $1 trillion. c. investment equals ?$1 trillion. d. investment equals $1 trillion.