This graph shows the cost and revenue curves faced by a monopoly. 
According to the graph shown, if Q1 units are being produced, this monopolist should:
A. charge P3 to maximize profits.
B. charge P1 to maximize profits.
C. charge P0 to maximize profits.
D. increase production.
Answer: A
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The purchase or building by a corporation of a facility in a foreign country is called
A) foreign direct investment. B) foreign capital depreciation. C) foreign portfolio investment. D) globally-directed investment.
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten
If the economy experiences an unanticipated demand shock and households and firms have rational expectations, there is
A) no trade-off between unemployment and inflation in either the short run or the long run. B) a trade-off between unemployment and inflation in the long run, but not in the short run. C) a trade-off between unemployment and inflation in the short run, but not in the long run. D) a trade-off between unemployment and inflation in both the short run and the long run.
Sellers who charge different prices to different customers can increase their net revenue
A) by forcing some customers to pay more for the product than it is worth to them. B) by getting high-price customers in effect to subsidize sales to low-price customers. C) if the demand of some customers for the product enables the sellers to build volume by selling at prices below marginal cost. D) if they can prevent customers from reselling to one another.