If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decreasing reserve requirements
b. increasing the discount rate
c. buying government bonds
d. none of the above
b
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When a firm is experiencing economies of scale
A. long-run average total cost is decreasing. B. minimum efficient scale has been achieved. C. a given percentage increase in output requires a more-than-proportionate increase in resources. D. an increase in output is accompanied by a more-than-proportionate increase in long-run average total cost.
Price discrimination exists:
A. in all industries, regardless of market structure. B. because sellers try to exploit differences in customers' willingness to pay. C. only when demand is inelastic. D. only in perfectly competitive markets.
The demand curve faced by a monopolistically competitive firm:
A. is more elastic than the demand curve faced by the purely competitive firm. B. is less elastic than the monopolist's demand curve. C. will shift outward as new firms enter the industry. D. is more elastic than the monopolist's demand curve.
Of the following high-income countries, which has the highest life expectancy at birth?
A) Canada B) Japan C) the United Kingdom D) the United States