If the federal government collects $10 billion in taxes and then spends it on the public, the money supply
A) rises by $20 billion.
B) rises by $10 billion.
C) falls by $10 billion.
D) is unaffected.
D
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A perfectly competitive firm can
A) sell all of its output at the prevailing market price. B) set a higher price to customers who are willing to pay more. C) raise its price in order to increase its total revenue. D) sell additional output only by lowering its price. E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices.
If a firm spends $600 more on advertising, its goal is for the demand curve for its product to shift ________ and its marginal revenue curve to shift ________
A) leftward; rightward B) leftward; leftward C) rightward; leftward D) rightward, rightward