If the quantity demanded at a price of $10 is 2,000 and the quantity demanded at a price of $8 is 2,400, a price-discriminating monopolist would want to:
A. sell 2,000 units for $10 each and then sell an additional 400 units for $8 each.
B. charge all consumers the higher price of $10 and sell 2,000 units.
C. charge all consumers $8 in order to increase quantity sold to 2,400.
D. sell 2,000 units for $8 each and then sell an additional 400 units for $10 each.
Answer: A
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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) one B) two C) nine D) ten
Refer to the table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
A. $10 and 60 units.
B. $9 and 50 units.
C. $8 and 60 units.
D. $7 and 50 units.
The negative relationship between unemployment and inflation is known as the
A. aggregate demand curve. B. efficiency wage line. C. Phillips curve. D. aggregate supply curve.
In an efficient market, an average investor who is outside Wall Street
A. cannot expect to get average returns. B. must be constantly vigilant by analyzing and adjusting their portfolio to get average returns. C. will habitually exceed average returns. D. will get average returns in a well-diversified portfolio even without analyzing or managing it.