In the long run, a firm in a monopolistically competitive industry has its price equal to its
A) average total cost.
B) marginal cost.
C) marginal revenue.
D) elasticity of demand.
A
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By using open market operations, the Federal Reserve
A) adjusts the supply of reserves to keep the federal funds interest rate equal to its target. B) controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target. C) adjusts the demand of reserves to keep bank rates in line with the federal funds rate target. D) adjusts the supply and demand of reserves to keep the federal funds interest rate equal to its target. E) None of the above answers is correct.
The term tax incidence refers to
A) the amount of revenue government collects from a tax imposed on a good or service. B) whether the burden of a tax rests more heavily on those with higher incomes or those with lower incomes. C) the degree of progression of a tax. D) the actual division of the burden of a tax between buyers and sellers in a market.
What is the world price of sugar without the tariff?
A. $1,500/ton B. $2,000/ton C. $1,000/ton D. $500/ton
Which of the following will cause a movement upward along a supply curve?
A. Increases in raw-material costs. B. Increases in labor costs. C. Increases in the cost of machinery. D. Increases in the market price of a good, other things being equal.