In Figure 42.1, what is the quantity an unregulated monopolist will produce (assuming the regulator strives for zero economic profit)? 
Figure 42.1
A. Q1
B. Q2
C. Less than Q1
D. More than Q2
Answer: B
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Economic profit is equal to the difference between:
A) total revenue and the full opportunity cost of all the resources used in production. B) total revenue and implicit costs. C) accounting profit and explicit costs. D) implicit and explicit costs.
The substitution effect indicates that higher real interest rates ________ current consumption for households who are lenders and ________ current consumption for households who are borrowers
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Which of the following statements best describes structural economic change?
a. Fiscal policy can increase overall demand, but the process of structural economic change happens more rapidly. b. Fiscal policy can increase overall demand, but the process of structural economic change inevitably takes time. c. Fiscal policy can determine the rate at which structural economic change occurs. d. Fiscal policy can increase both overall demand and create structural economic change simultaneously.
The National Bank Act
a. stemmed the credit expansion that banks generated by holding each other's deposits b. avoided wholesale shifts of deposits between city and country banks c. was instrumental in averting the 1907 Knickerbocker disaster d. helped to avoid financial panics and recessions e. tightened the money supply, but was by no means the banking industry's panacea