A commercial bank can expand its excess reserves by:
A. demanding and receiving payment on an overdue loan.
B. buying bonds from a Federal Reserve Bank.
C. buying bonds from the public.
D. paying back money borrowed from a Federal Reserve Bank.
A. demanding and receiving payment on an overdue loan.
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If a perfectly competitive firm decides to shut down in the short run, its loss will equal its
A) minimum average variable cost, AVC. B) total variable cost, TVC. C) total fixed cost, TFC. D) average total cost, ATC.
The above figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will
A) decrease as other firms enter the industry. B) decrease as product differences disappear. C) become less elastic as firms exit the industry. D) become less elastic as other firms enter the industry.
When countries try to ban child labor,
A) most children start to attend school. B) family poverty decreases. C) child labor often goes underground, with children working in the informal economy, family enterprises and remote areas. D) GDP increases.
All of the following are reasons for an oligopoly to occur EXCEPT
A) economies to scale. B) barriers to entry. C) independence among firms. D) merger.