Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P 1 , the monopolist would produce output:
A. Q 2 and realize a normal profit.
B. Q 4 and realize a normal profit.
C. Q 3 and realize an economic profit.
D. Q 4 and realize a loss.
D. Q 4 and realize a loss.
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The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. If Bob could keep $50 with certainty, his utility would be
A) a. B) b. C) c. D) d.
There is a 50 percent decrease in the price of lumber used by a firm that builds new homes. This causes
A) a decrease in the quantity of new homes supplied. B) an increase in the supply of new homes. C) an increase of the quantity supplied of new homes. D) a decrease in the supply of new homes.
As global financial markets become more intertwined, the Fed has
A. more control over fiscal policy. B. less control over fiscal policy. C. less control over monetary policy. D. more control over monetary policy.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary