Which of the following activities is one of the responsibilities of the Federal Reserve?
A. loaning money to other countries that are friendly to the United States
B. issuing new bonds to finance the federal budget deficit
C. auditing the various agencies and departments of the federal government
D. assisting banks that are in a difficult financial position
Answer: D
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Refer to Figure 2-9. What is the opportunity cost of producing 1 popsicle in Iceland?
A) 1 1/2 snow cones B) 3/4 of a snow cone C) 2/3 of a snow cone D) 270 snow cones
Firms free ride on the research and development of other firms when they
A) buy a firm's newly developed product, and then give it away to consumers. B) choose a level of research and development that is inefficiently high. C) license a new technology from a firm that developed the new technology. D) use knowledge other firms have developed without paying for that knowledge.
As output rises, the monopolist's marginal revenue
A. remains identical to price. B. stays constant. C. declines as quickly as price. D. declines more quickly than price.
Markets with hit-and-run entry and exit experience
A) barriers to entry. B) firms entering whenever they can make a profit and exiting when they cannot make a profit. C) steady long-run economic profit. D) a very steady number of firms.