Advertising:
a. cannot influence market demand
b. shifts the average total cost curve upward.
c. is used only by perfectly competitive firms.
d. makes demand more elastic by creating customer loyalty.
b
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The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.62, then
A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.
The main difference between stabilization policies and structural reform policies is that stabilization policies
A) focus on microeconomic issues and structural reform policies focus on the macroeconomic environment. B) focus on macroeconomic issues and structural reform policies focus on the microeconomic environment. C) are rarely used by reform governments; they prefer to use structural reform policies in their place. D) have smaller economic impacts than structural reform policies. E) create less unemployment than structural reform policies.
Prudential supervision is, in essence, the monitoring of ________
A) borrowers, to enforce restrictive covenants B) intermediaries, to direct credit to preferred sectors of the economy C) holders of an insurance policy, to discourage excessively risky behaviors D) depositors, to discourage sudden withdrawal of funds
In the multiple regression model 
,if x1 is correlated with u but the other independent variables are uncorrelated with u, then all of the OLS estimators are generally consistent.
Answer the following statement true (T) or false (F)