As new firms enter a monopolistic competitive industry, it can be expected that:
A. market price will increase.
B. the output of existing firms will increase.
C. profits of existing firms will increase.
D. profits of existing firms will decrease.
Answer: D
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In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the value to consumers is 
A. 0P*CQ*. B. 0HCQ*. C. 0ABQD. D. 0PfloorBQD.
An increase in the federal funds rate could be caused by:
A. an open market purchase of government securities. B. an increase in the excess reserves of the banking system. C. an increase in the reserve requirement. D. a cut in the discount rate.
Assume the total product of two workers is 200 and the total product of three workers is 300. The three workers' average product is ________ while the third worker's marginal product is ________.
A. 40; 80 B. 100; 100 C. 80; 40 D. 300; 200
In a business cycle, the high point of economic activity is called
A. a peak B. a trough C. a zenith D. a high