Negative externalities cause loss of welfare not transmitted by market factors.
A. True
B. False
C. Uncertain
A. True
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To change the rate of growth of the money supply, the Fed can do all but which one of the following?
A) Shift the demand for money curve by changing the interest rate. B) Engage in open market operations. C) Change the discount rate. D) Change the required reserve ratio.
Banks are required to keep a minimum amount of funds in reserve because
A. Depositors may decide to withdraw funds at any time. B. The bank may decide to increase aggregate demand at any time. C. The Fed may decide to withdraw funds at any time. D. Borrowers may decide to repay loans ahead of schedule.
During the 1990s, the price of VCRs fell by about 30 percent, and quantity sold decreased by the same amount. The demand for VCRs must
A. be inelastic B. be elastic C. be unit elastic D. have shifted to right E. have shifted to the left
Use the following cost table to answer the next question.OutputAverage Variable CostAverage Total CostMarginal Cost0---2$2.50$27.50$2.542.0014.501.562.0010.332.082.138.382.5102.307.303.0122.506.673.5143.006.576.0164.007.1311.0The table shows cost data for a perfectly competitive firm. If the market price for the firm's product is $6, what output level will the firm produce to maximize profits?
A. 16 B. 12 C. 0 D. 14