An adverse supply shock would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if the shock is temporary; shift to the right if the shock is permanent.
B
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The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. 
The socially optimal level of output is:
A. 4 units per day. B. 5 units per day. C. 10 units per day. D. 8 units per day.
How do Pigouvian taxes help in reducing pollution?
What will be an ideal response?
When bond prices rise,
A. stock prices must fall. B. interest rates must fall. C. interest rates must rise. D. bankruptcies generally increase.
Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the
a. marginal rate of substitution. b. rate at which the consumer will give up X to gain Y while maintaining the same level of utility. c. relative price of the two goods. d. All of the above are correct.