The "representative firm" raises its output level as a result of entry in a competitive market.
a. true
b. false
Answer: b. false
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If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the academic year, the marginal dollar cost to you of parking your car on campus on any given weekday will be
A) $35. B) $1. C) $.20. D) zero. E) negative.
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase. B) GDP will decrease. C) GDP will not change. D) GDP may increase or may decrease depending on inflation.
The most commonly used tool by the Federal Reserve to control the monetary base is
a. changes in the discount rate. b. changes in tax rates on commercial banks. c. changes in legal required reserve ratios. d. open market operations.
From 1929 to 1932, the total value of the stock market:
A. stayed the same. B. more than tripled. C. more than quadrupled. D. decreased by nearly 90 percent.