A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of total saving (private plus public) in the economy
A) increase; decrease
B) increase; increase
C) decrease; increase
D) decrease; decrease
Answer: B
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Consider the monopolist depicted in the figure above. The profit maximizing level of output for a single-price monopolist is
A) 7. B) 11. C) 13. D) 22.
Economic growth means:
A. more production of goods and services. B. people maintain their standard of living. C. all of a nation’s citizens must be better-educated. D. in general tax revenues are lower.
Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) does not try to eliminate recessions, but instead focuses on preventing inflation. B) can fine tune the economy and realistically hope to keep the economy from experiencing recessions. C) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be. D) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions.
Refer to the information provided in Figure 13.5 below to answer the question that follows. 
Figure 13.5 Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. This company is
A. suffering an economic loss and not covering its variable costs. B. suffering an economic loss but covering its variable costs. C. earning an economic profit. D. breaking even.