Refer to Table 9-7. The table shows entries on the balance sheets for the Federal Reserve and the banking system above. These balance sheet entries are consistent with
A) an open market sale of $1,500 in bonds.
B) an open market purchase of $1,500 in bonds.
C) neither an open market sale nor an open market purchase.
D) either an open market sale or an open market purchase.
Ans: A) an open market sale of $1,500 in bonds.
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Answer the following statement true (T) or false (F)
In equilibrium, which of the following conditions is common to both unregulated monopoly and pure competition?
A. P = MR B. MC = P C. AR = ATC D. MR = MC
If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is
A. elastic. B. unit elastic. C. inelastic. D. perfectly inelastic.
In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that:
A) marginal cost is less than average total cost. B) average total cost is positive and constant. C) average total cost equals marginal cost. D) A and B are correct. E) B and C are correct.