For a firm in a perfectly competitive industry, the demand curve for its own product is
A. always above the marginal revenue curve.
B. vertical.
C. the same as the marginal revenue curve.
D. downward sloping.
Answer: C
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Which of the following would not be classified as an oligopolistic industry?
A) Defense contractors. B) The recorded music industry. C) The tobacco industry. D) The women's clothing industry.
According to the graph shown, producer surplus is:
A. the area under the demand curve and above the market price.
B. the area under the supply curve and above the price.
C. the area above the supply curve and below the price.
D. the area above the demand curve and below the price.
The composition of demand and supply is relatively unimportant to the study of inflation and unemployment rates.
Answer the following statement true (T) or false (F)
One of the principal ways in which Congress intended the Fed to provide insurance against financial panics was to act as a "lender of first resort."
a. True b. False Indicate whether the statement is true or false