As other firms enter a monopoly's market, the demand curve a monopoly faces
A) is unaffected.
B) becomes more inelastic.
C) becomes more elastic.
D) may become more or less elastic, depending on its Lerner Index.
C
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Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)
a. Decrease in the price of potato chips.
b. Decrease in income, assuming that potato chips are a normal good.
c. Announcement by the FDA that potato chips lower cholesterol.
d. Increase in the price of a pretzel.
In its role as the bankers' bank, the Federal Reserve performs all of the following services, except:
A. clearing paper checks and transferring funds electronically. B. collecting and making available data on business conditions. C. managing U.S. Treasury borrowings. D. making discount loans.
Which period was not a recession in the United States?
A) 1974-1975 B) 1990-1991 C) 1984-1985 D) 2001
In the United States, the central bank is the:
A. Federal Reserve. B. Congressional Budgeting Office. C. Treasury. D. National Bank of the United States.