Refer to the graph below. Which rectangle represents monopolists' profit?

• A.A
• B.A + B + C
• C.C + D

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Suppose Georgia was the only state that produced peaches. If peaches sold for $6 a pound in
Georgia and it costs 50 cents to transport a pound of peaches to Virginia, we would expect the price of a pound of peaches in Virginia to be

• A.more than $6.50 because Georgia farmers would have a peach monopoly.
• B.$6.00
• C.$6.50

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Which of the following will unambiguously increase NAV of an open-end fund?

• A.Securities held increase in value by 1%
• B.Shares of the largest holding in the portfolio split 2-for-1
• C.Purchases of new shares exceed redemptions

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If the Fed injects $1 million into the economy by buying T-bills in open market, and the required reserve is 20%, then the money supply will increase a maximum of:

• A.$800,000
• B.$1,000,000
• C.$5,000,000

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Suppose the probability that oil prices will rise any given quarter is 0.51, and the probability that oil prices will stay level or decline is 0.49. If oil prices rise, GNP will contract by 1% with 80% probability, and expand by 0.5% with 20% probability. If oil prices decline or stay level, GNP will expand 3% with a 75% probability and contract 0.5% with a 25% probability. What is the expected change in GNP in the next quarter?

• A.-0.86%
• B.+0.86%
• C.+0.68%

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