Is the firm a perfect competitor or an imperfect competitor? Explain.
An imperfect competitor has to lower price to sell additional units.
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A reserve requirement of 40 percent would mean that each dollar of reserves could support ____ of demand deposits
a. $0.40 b. $1.60 c. $2.50 d. $4.00
In the efficiency wage theory, unemployment is caused by
a. firms paying higher than the equilibrium wage to increase workers’ productivity. b. firms paying less than the equilibrium wage to increase their profit. c. firms paying the equilibrium wage. d. workers insisting on being paid more than the equilibrium wage.
If a government increases its budget deficit, then domestic interest rates
a. and net exports rise. b. rise and net exports fall. c. fall and net exports rise. d. and net exports fall.
Suppose the figure below illustrates the demand curve facing a monopolist. 
If the monopolist decreases its price from $12 to $10, its total revenue will ________.
A. decrease by $600 B. decrease by $1000 C. increase by $600 D. increase by $1000