If you see that a firm's marginal revenue curve is downward sloping, you can infer that it is a
A. price maker.
B. zero price setter.
C. price setter.
D. price taker.
Answer: A
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If the currency drain ratio increases, how can the Fed adjust the monetary base to offset the effect on the quantity of money?
What will be an ideal response?
In the transition from the short run to the long run, the number of firms in a competitive industry is
a. fixed. b. increasing at a constant rate. c. decreasing. d. able to adjust to market conditions.
In a perfectly competitive market,
A. a firm can sell as much as it wants at the existing market price. B. the additional revenue from selling one more unit of output is less than the market price. C. a firm can attract more customers by lowering its price. D. both a and c E. both b and c
The economy is in equilibrium when [I + G = S + T], assuming there is
A. positive net exports. B. no foreign trade. C. no government or taxes. D. negative net exports.