If a monopoly is maximizing profits:
a. price will always be greater than average cost.
b. price will always equal marginal cost.
c. price will always be greater than marginal cost.
d. price will always equal marginal revenue.
c
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The adverse effects of rent controls include
A) keeping rental rates too high in a normal market. B) excessive construction of new rental housing. C) reduced incentive to construct new rental housing. D) increased incentives for people to purchase their own homes.
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a third party would be:
a. workers at the factory. b. factory managers. c. chemical customers. d. local homeowners. e. owners of the factory.
Which one of the following statements concerning the National Bank Act is not true?
a. It required national banks to buy Treasury bonds equal to one third of their capital. b. It made banks subject to periodic bank audits. c. It reestablished confidence in the banking system. d. It led to a widespread conversion of banks from state to national charters. e. It levied a 10 percent annual tax on state-chartered bank-note issues.
What impact did the National Industrial Recovery Act (NIRA) of 1933 have on industrial output?
a. Industrial output had been declining, but it stabilized during the months following passage of the NIRA. b. Industrial output increased sharply after the passage of the NIRA. c. Industrial output had begun to increase, but it fell sharply following the passage of the NIRA. d. Industrial output and employment declined during the months prior to passage of the NIRA, and the legislation was unable to stop the decline.