Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. Prior to the imposition of the tax consumer surplus was ________ and after the tax was imposed consumer surplus was ________.
A. $100; $64
B. $64; $100
C. $200; $128
D. $50; $32
Answer: A
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According to the Application, as new products are constantly invented and introduced on the market,
A) the bias in the CPI can be large. B) the bias in the CPI will eventually disappear. C) the bias in the CPI will remain virtually unchanged. D) the bias in the CPI tends to become smaller.
Income inequality is
A. Not an issue in the United States because of the progressive federal tax system. B. Often greatest in the poorest countries such as Namibia and Botswana. C. A global issue because the poorest tenth of the population gets 20-30 percent of total income. D. Not an issue for wealthy countries such as the United States and Germany.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
When the exchange rate increases from 4 francs per dollar to 6 francs per dollar, the dollar has ________.
A. become overvalued B. appreciated C. depreciated D. become undervalued