A monopoly or group of firms acting together as a monopoly
a. cannot perform the economic task of resource allocation
b. allocates resources in the most efficient way possible
c. misallocates resources by producing more output than a competitive industry would
d. misallocates resources by producing where the marginal benefit of the final unit produced exceeds its marginal cost
e. misallocates resources by producing where the marginal benefit of the final unit produced is less than its marginal cost
D
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Under a fixed exchange rate system, the central bank of a country experiencing a balance of payments surplus will:
A) increase the supply of domestic currency to prevent currency depreciation. B) increase the demand for domestic currency to prevent currency depreciation. C) increase the supply of domestic currency to prevent a currency appreciation. D) increase the demand for domestic currency to prevent a currency appreciation.
Which policy measure bans spinning?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
With velocity constant and equal to 2, a $10 billion increase in the money supply shifts the LM curve to the right by
A) $2 billion. B) $5 billion. C) $10 billion. D) $20 billion.
The McKinley Tariff of 1890 marked the beginning of the American move toward free trade
Indicate whether the statement is true or false