Refer to the diagram. The firm will realize an economic profit if price is:
A. P 1 .
B. P 2 .
C. P 3 .
D. P 4 .
D. P 4 .
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What happened to real interest rates during the early 1930s?
A) They declined as nominal interest rates declined. B) They rose as nominal interest rates rise. C) They declined due to deflation. D) They rose due to deflation.
Which of the following is NOT a benefit of international trade?
A) It increases overall output. B) It results in a transmission of ideas. C) It promotes self-sufficiency. D) It results in the transmission of new processes.
Why is it important that a firm have market power if it wishes to engage in price discrimination?
What will be an ideal response?
In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 5 should be filled with 
A. PI* for macroeconomic equilibrium Price Index. B. RGDP* for macroeconomic equilibrium Real Gross Domestic Product. C. AD for Aggregate Demand. D. AS for Aggregate Supply.