There are always some workers without jobs, even when the overall economy is doing well

When the Fed buys a $10,000 bond from a bond dealer

A) reserves of the banking system remain unchanged, but the money supply increases by $10,000. B) reserves of the banking system increase by $10,000, but the money supply will only be able to increase by something less than this amount. C) reserves of the banking system increase by $10,000, but the money supply can increase by more than $10,000. D) reserves of the banking system remain unchanged, but the money supply decreases by $10,000.

A natural monopoly is most likely to occur in which of the following industries?

A) the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years B) the software industry because of the importance of network externalities C) an industry where fixed costs are very large relative to variable costs D) the diamond mining and marketing industry because one firm can control a key resource