The figure above represents the relationship between output and cost in an industry with an external cost. When output is at D, what distance represents the marginal external cost?
A) AB
B) BC
C) CD
D) BD
E) None of the above answers is correct.
B
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Monetary policy loses its effectiveness in all of the following situations EXCEPT
A) when the IS curve is vertical. B) when the LM curve is nearly horizontal. C) when interest rate controlled by the Fed reaches zero. D) when the IS curve is horizontal.
If a firm has market power in the output market but buys labor in a competitive market, it will hire the same quantity of labor that a competitive firm will
Indicate whether the statement is true or false
If income were distributed equally our economic _________ would suffer.
Fill in the blank(s) with the appropriate word(s).
Suppose the bank has a 10% reserve requirement, $5000 in deposits, and has loaned out all it can, given the reserve requirement
A. It has $500 in reserves and $4500 in loans B. It has $50 in reserves and $4950 in loans C. It has $555 in reserves and $4445 in loans