A price floor that is set below the equilibrium price
A) causes suppliers to lower their prices.
B) is binding.
C) is non-binding.
D) creates a shortage.
C
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The above figure shows the production possibility frontier for an economy. The point or points that are not attainable are
A) points B and C. B) points A, B, and C. C) point E. D) points A, B, C, and D. E) points A and D.
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
Suppose the figure below illustrates the demand curve facing a monopolist. 
Suppose this firm maximizes its profits by charging a price of $8 per unit. This implies that the firm's:
A. marginal cost is $0. B. marginal cost is less than $8. C. marginal cost is $8. D. average total cost is $8.
Which of the following changes shifts the SRAS curve down?
A. A decrease in firms' costs B. A decrease in government purchases C. An increase in the labor force D. An increase in the money supply