The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries
As time passes, the price of cranberries ________ and the initial firms' economic ________. A) falls; profit will be eliminated
B) rises still higher; loss will be eliminated
C) rises still higher; profit will not change
D) falls; loss will be increased
E) falls; profit will not change
A
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Refer to Figure 12-4. What is the amount of its total fixed cost?
A) $1,080 B) $1,440 C) $2,520 D) It cannot be determined.
Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The welfare loss triangle from this tax is represented by area:
A. cfg. B. abdc. C. beg. D. abc.
Which of the following is not true about M1?
A. Savings accounts makes up approximately one-third of it. B. It includes the most liquid forms of money. C. It is the narrowest definition of the money supply. D. Currency in circulation makes up approximately half of it.
A currency drain occurs when the
A) Fed increases the required reserve ratio. B) Fed sells U.S. government securities. C) non-bank public increases its holdings of currency outside the banking system. D) banks reduce the number of loans they create with their excess reserves. E) Fed buys U.S. government securities.