The ability of a firm to maintain a price above the competitive level without losing all its customers to rival firms is termed as ________
a. competition
b. marginal cost pricing
c. allocative efficiency
d. market power
d
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If the Federal Reserve purchases newly issued government debt
A) the effect is as if the Treasury had printed money to cover the deficit. B) the effect is the same as borrowing from the public. C) the money supply decreases. D) existing money is destroyed.
Economic theory predicts that
(a) market forces impose stiff penalties on profits whenever enterprises discriminate against individuals on any basis other than productivity. (b) government intervention is required to combat discrimination. (c) market mechanisms and government interventions are weak in addressing issues of discrimination. However, government is relatively stronger. (d) discrimination is a necessary part of life private and public life.
With a reserve ratio of 10 percent, the maximum potential money multiplier is
A) 1. B) 5. C) 10. D) 100.
Government polices aimed at changing the underlying structure or institutions of the nation's economy are called:
A. fiscal policy. B. structural policy. C. trade policy. D. monetary policy.