Exhibit 8-4 Demand and cost curves for a monopolist
?
As shown in Exhibit 8-4, in order to maximize its profit (or minimize its loss), how much output should the monopoly produce?
A. 2 units per hour.
B. 4 units per hour.
C. 6 units per hour.
D. 8 units per hour.
Answer: B
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If a bank had demand deposits of $80 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
a. $20 million b. $40 million c. $60 million d. $80 million
One goal of the European Common Market was to
a. abolish tariffs and import quotas among the member nations. b. abolish tariffs and import quotas between the member nations and the rest of the world. c. discourage the free movement of capital and labor among member nations. d. replace the North Atlantic Treaty Organization (NATO).
Suppose the market basket consists of 400X, 150Y, and 220Z. Current-year prices are $1.50 for each unit of X, $0.50 for each unit of Y, and $4.60 for each unit of Z. Base-year prices are $1.00 for each unit of X, Y, and Z. Approximately what is the value of the CPI in the current year?
a. 457 b. 354 c. 219 d. 119
Increased trade restrictions
A. Reduce total consumption possibilities. B. Alter a nation's production possibilities. C. Increase a trade deficit in the short run. D. Have a neutral impact since the losses cancel out the benefits.