Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
If Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price, then what will be Mega's economic profit?
A. $150
B. $50
C. $100
D. $0
Answer: C
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According to Robert Gordon (1969, 1999), the extraordinary expansion of physical production in 1942–45 was achieved by
(a) massive government investment in new plants and equipment. (b) finally bringing into production manufacturing plants and equipment that had been idle since the early 1930s so that big government investment was not necessary. (c) the Federal Reserve's peg on the bond market, which enrolled the private sector to mobilize the necessary capital to invest in new plant and equipment. (d) none of the above.
The ease with which any financial asset, such as your checking account, your savings account, or your certificate of deposit (CD), can be converted into a medium of exchange (to buy, say, a fish sandwich at McDonald's) is referred to as its
a. velocity b. accessibility c. convertibility d. availability e. liquidity
Suppose a bank has $2 million in deposits, a required reserve ratio of 10 percent, and total reserves of $500,000. Then it has excess reserves of
A. $200,000. B. $500,000. C. $300,000. D. $50,000.
Which of the following is concerned with social regulation?
A. Federal Reserve Board B. Food and Drug Administration C. Sherman Commission D. Better Business Bureau