Referring to Figure 19.2, the effect of a decrease in U.S. interest rates is represented by a movement from point

A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

A) free good B) scarce good C) economic good D) monetary good

If the above figure accurately portrays the market conditions for a given monopolist, we can be assured that the monopolist

A) is making a normal profit. B) is producing at the level that will maximize benefit to society. C) is making excessive profits. D) will be forced to go out of business in the long run.