If a regulatory commission wishes to allow a firm to earn a normal rate of return, it should set price equal to:
a. marginal revenue
b. marginal cost.
c. average total cost.
d. average variable cost.
c
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Which of the following indifference curves maximizes utility or satisfaction given the consumer's budget line for sodas and cookies? 
A. U1 B. U2 C. U3 D. U4
If an economy is producing a combination of goods inside its production possibilities curve, it may mean that the nation
a. is overproducing. b. is maximizing its production. c. is under utilizing its resources. d. has no room to grow.
Long-run full-employment equilibrium assumes: a. a downward-sloping production function. b. a downward-sloping long-run supply curve (LRAS)
c. the CPI index price level equals the equilibrium wage rate. d. the CPI equals aggregate demand (AD) equals short-run aggregate supply (SRAS) equals long-run aggregate supply (LRAS).
Which of the following is true when the price of a good or service rises?
a. Buyers who were already buying the good or service are better off. b. Some buyers exit the market. c. The total consumer surplus in the market increases. d. The total value of purchases before and after the price change is the same.