Which of the following is an example of an innovation that can lead to new investment and spur the economic growth of a nation?
a. Horizontal drilling and hydraulic fracturing resulting in the discovery of new sources of shale gas in the U.S.
b. Outsourcing the manufacturing units of a U.S. shoe-making company, resulting in the reduction of overhead costs
c. A tire manufacturer laying off some of its workers to increase its profit margin
d. An automobile-manufacturing company using cheaper machines for its main product line
a
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What is the domestic price of sugar in a closed economy? 
A. $3,000/ton B. $1,000/ton C. $2,000/ton D. $500/ ton
In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.
If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion, consumption will increase by
A. $1,200 billion. B. $600 billion. C. $2,000 billion. D. $800 billion.
Which of the following is NOT an example of a flow variable?
A. inventory investment B. planned investment C. The federal deficit D. capital stock