Refer to the graph shown. The shift from SATC3 to SATC4 reflects:
A. diminishing marginal productivity.
B. economies of scale.
C. diseconomies of scale.
D. increasing marginal productivity.
Answer: C
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Refer to the figure below. If the price rises from $10 to $14, what will happen to the price elasticity of supply? 
A. It stays the same. B. It decreases. C. It increases. D. This cannot be determined from the information provided.
According to the new growth theory, ________ is the factor that motivates technological change
A) diminishing returns B) random chance C) decisions about how much human capital to acquire D) profit E) the replication of activities
If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
A) -0.1% B) 5% C) 0% D) -5%
An downward shift in a worker’s budget line is a result of
a. an increase in the wage rate. b. a decrease in the wage rate c. an increase in nonlabor income. d. a decrease in nonlabor income.