Marginal profit is the additional profit that accrues to the firm when the output rises by one unit
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following four firms would most likely NOT be part of a perfectly competitive market?
A) Mark sells his tomatoes at the local farmers market. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Village Pizza sells pizza in a college town. D) Space Age Fuel is a gas station in Bend, Oregon.
A central bank is an institution that
A) pays for government expenditures. B) controls a nation's monetary policy. C) runs a country's stock market. D) determines a nation's fiscal policy.
Which of the following would cause the investment demand curve to shift?
a. Animal spirits (expectations). b. Technological change. c. Change in business taxes. d. All of these.
When the Fed decreases the required reserve ratio, then the:
a. ability of banks to make loans is restricted. b. ability of banks to make loans is enhanced. c. ability of banks to make loans is unaffected. d. interest rate that banks pay to the Fed to borrow money is reduced. e. interest rate that banks pay other banks to borrow money is decreased.