Potential GDP would increase if
A. the rate of capital depreciation increased.
B. the labor force decreased.
C. the price level grew.
D. the rate of capital growth increased.
Answer: D
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Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $20, $20, $40, and $40 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28
Refer to the graph shown. If a firm wants to produce 300 units of output, it should use the plant size represented by:
A. SATC1. B. SATC2. C. SATC3. D. SATC4.
Using Figure 1.5 above, we know the production of 6 units of soda and 1 unit of pizza is 
A. possible, but only if all resources were fully employed. B. possible, but there would be unemployed resources. C. impossible because we have the resources but do not have the technology. D. impossible because we have the technology but do not have the resources.
Which of the following would be illegal under the Clayton Act?
A. Executives from Nike and Reebok meet to fix the price of athletic shoes. B. Ford and Firestone Tire agree to merge. C. Xerox will only sell its copy and print machines if buyers agree to also buy a service contract. D. Healthy Energy Bar Co. falsified a study showing the health benefits of its product and uses that study in its advertising.