What would happen to the optimal amount of pollution if studies have found dangerous effects of SO2 cause cancer and the government subsidizes companies to use different pollution cleaning techniques?
A. Stay the same
B. Increase
C. Decrease
D. Uncertain
Answer: D
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The equation for determining real GDP for year X is:
A. 
B. 
C. 
D. 
As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced
A) would be positively and then negatively sloped. B) would be positively sloped. C) would be horizontal. D) would be negatively sloped.
If we observe an increase in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. an increase in the supply of the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a decrease in the supply of the good.
Which of the following is a normative macroeconomics statement?
A) The central bank should increase the nation's money supply. B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. D) The local government ought to spend more on recreational facilities.