Suppose a firm experiences lower average costs whenever output increases in the long run. Then we would expect the firm to have:
A. a U-shaped long-run average cost curve.
B. an L-shaped long-run average cost curve.
C. a long-run average cost curve that always decreases.
D. a minimum efficient scale relatively close to the origin.
Answer: C
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The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. 
This monopolist maximizes its profit by producing ________ units per day and charging a price of ________ per unit.
A. 8; $6 B. 8; $14 C. 4; $6 D. 4; $18
The rate at which banks can borrow excess reserves from other banks is equal to
A) the discount rate. B) the required reserve ratio. C) the interest rate paid on reserves held with the Fed. D) none of the above.
According to traditional economics, rational consumers seek to maximize their
a. “bang for the buck” b. similarity to other consumers c. number of substitutes d. “bounded rationality”
The indices that are based on a fixed market basket of goods and services are
A. CPI, PPI and GDP deflator. B. CPI and GDP deflator. C. CPI and PPI. D. PPI and GDP deflator.