If a monopolist had no costs, its best possible price would be where demand is
A. relatively (but not completely) inelastic.
B. unit elastic.
C. infinitely elastic.
D. relatively (but not perfectly) elastic.
Answer: B
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In the short run, which of the following is the most likely effect of an unanticipated move to expansionary monetary policy?
a. an increase in real output b. a decrease in real output c. an improvement in technology, which will stimulate growth in the long run d. an increase in prices proportional to the increase in the money supply
An open-market purchase of government securities by the Fed will:
A. increase bank reserves, and the money supply will increase. B. increase bank reserves, and the money supply will decrease. C. decrease bank reserves, and the money supply will decrease. D. decrease bank reserves, and the money supply will increase.
In an economy, which of the following is not a source of inefficiency?
A. Externalities B. Monopoly C. Public Goods D. International Trade
The main statistical agencies in Washington are
A. the National Labor Relations Board, the Drug Enforcement Agency, and the Internal Revenue Service. B. the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Census Bureau, and the Federal Reserve Board. C. the U.S. Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, and the Census Bureau. D. the Federal Bureau of Investigation, the Central Intelligence Agency, the Bureau of Economic Analysis, and the National Labor Relations Board.