Deadweight loss from monopoly power is expressed on a graph as the area between the
A) competitive price and the average revenue curve bounded by the quantities produced by the competitive and monopoly markets.
B) competitive price line and the marginal cost curve bounded by the quantities produced by competitive and monopoly markets.
C) competitive price line and the monopoly price line bounded by zero output and the output chosen by the monopolist.
D) average revenue curve and the marginal cost curve bounded by the quantities produced by competitive and monopoly markets.
D
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Which of the following is NOT one of the Fed's monetary policy tools?
A) last resort loans B) the required reserve ratio C) the income tax rate D) buying and selling U.S. government securities
The Fed's open market operations normally involve only the purchase of government securities, particularly those that are short-term. However, during the crisis, the Fed started new programs to purchase
A) mortgage-backed securities and long-term Treasuries. B) mortgage-backed securities and Treasury bills. C) commercial papers and short-term Treasuries. D) Treasury bills and Treasury notes.
We know that industrial countries tend to trade with other industrial countries. This pattern counters the:
a. preference theory of comparative advantage. b. factor abundance theory of comparative advantage. c. concept of intraindustry trade. d. product life cycle theory of comparative advantage. e. human skills theory of comparative advantage.
"The line distinguishing external from internal goals can be fuzzy." Discuss
What will be an ideal response?