Refer to the information provided in Figure 13.5 below to answer the question that follows. 
Figure 13.5 Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. The Silver Exchange has hired you as an economic consultant. You should advise this monopolist to
A. produce in the short run and expand capacity in the long run.
B. shut down in the short run and exit the industry in the long run.
C. shut down in the short run but expand capacity in the long run.
D. produce in the short run but exit the industry in the long run.
Answer: B
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As the central bank, the Federal Reserve System provides banking services to
A) banks and regulates financial institutions and markets. B) foreign corporations and determines the exchange rate. C) the government and the stock market. D) individuals and controls the quantity of money. E) banks and determines how much the U.S. government will borrow.
The increase in unemployment associated with a recession is called:
a. frictional unemployment. b. discouraged unemployment. c. cyclical unemployment. d. structural unemployment.
An agreement in which the incentives of both parties match their goals as closely as possible is:
A. a corporate takeover contract. B. an incentive-compatible contract. C. an X-inefficiency contract. D. a public good.
Refer to Table 10.1. If the price of output is $2 per unit, the marginal revenue product of the fourth unit of labor is:
A. $50. B. $52.50. C. $100. D. $105.