Suppose that a perfectly competitive industry becomes a monopoly. What effect will this have on consumer surplus, producer surplus, and deadweight loss?

One method used by the Federal Reserve to prevent abuse of the discount facility is

A) higher bank taxes. B) higher reserve requirements. C) tighter bank surveillance. D) selling fewer government securities to the banks involved.

Which of the following is not a market failure?

a. A lack of competition in some markets. b. Prices determined in competitive markets, which consumers, as individuals, have no control over. c. The presence of externalities in some markets. d. A lack of public goods desired by a majority of citizens. e. Income inequality.