Occurs whenever the quantity supplied is greater than the quantity demanded
What will be an ideal response?
surplus
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Changing the discount rate
a. provides a signal that the Fed wants to encourage an expansion or contraction of the money supply. b. is usually done in large increments in order to have a rapid impact on business activity. c. is primarily remedial rather than preventive. d. is a function of the Federal Reserve Banks without any review by the Board of Governors.
A monopoly occurs when
A. A firm gains some level of market power. B. There is an underproduction of a good or service by a firm. C. There is only one producer of a particular good or service. D. A firm charges a price greater than the equilibrium price.
Explain why a perfectly competitive firm can sell as much as it wants at the market price but a monopolist must lower its price to sell more.
What will be an ideal response?
The best example of a standardized good would be:
A. breakfast cereal B. a handbag. C. an autographed baseball. D. corn.