A firm with market power
A. faces a downward-sloping demand curve.
B. can increase price without losing all sales.
C. is the only seller in a market.
D. both a and b
E. all of the above
Answer: D
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Education leads to external benefits because
A) the people who become better educated get better jobs. B) better educated people commit fewer crimes. C) better educated people are less lazy. D) little pollution is created when educating people. E) better educated people are more productive.
The quantity of money demanded is the
A) average daily volume of bank account withdrawals. B) amount that people and businesses choose to hold. C) fraction of cash holdings in an average investment portfolio. D) income and volume of profits that people and businesses would like to receive. E) sum of checkable and savings deposits at banks.