In the model of aggregate demand and aggregate supply, the GDP deflator measures the
a) price of oil.
b) average price level.
c) nominal interest rate.
d) amount of real output.
Ans: b) average price level
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Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $2 and the price of soybean feed is $6, what is the cost-minimizing fee combination producing P = 200?
a. C = 100 b. S = 40 c. C = 50, S = 20 d. All points on the P = 200 isoquant would cost the same.
Social regulations come about because of
A) market failure B) government failure C) changes in the social contract D) rent-seeking by bureaucrats.
The added revenue that a firm takes in when it increases output by one additional unit is ________ revenue.
A. fixed B. variable C. total D. marginal
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's maximizes profits, its ________ is $240.
A. total cost B. marginal revenue C. total revenue D. profit