Which of the following is true of pure monopoly?
a. Monopoly expands the options available to consumers.
b. Monopoly results in allocative inefficiency.
c. Profits and losses induce firms to enter and exit from industries.
d. Monopoly works well when governments regulate prices.
B
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When you open a checking account at Bank of America, Bank of America
A) has more reserves and more excess reserves. B) has more reserves, but excess reserves remain unchanged. C) has more deposits and less in excess reserves. D) has more deposits, but excess reserves remain unchanged.
The World Bank:
A. is also known as the International Monetary Fund (IMF). B. lends money to developing nations for basic infrastructure projects such as dams, irrigation, health and sanitation, communications, and transportation. C. is an affiliate of the World Trade Organization (WTO). D. provides subsidies to private firms so they can improve their wages and working conditions.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Which of the following is correct?
A. AC = AFC/Q B. AC = AFC + AVC C. AC = MFC + MVC D. TFC + TMC = MFC + MVC