A monopolist who is maximizing profits produces to the point at which
A. price is greater than marginal cost.
B. price, marginal cost and average variable cost are equal.
C. price is greater than average total cost.
D. marginal cost and average total cost are equal.
Answer: A
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If stock exchanges did not exist,
A. the risk to the investor of buying stocks would be much greater. B. the economy’s resources could be more efficiently allocated among firms. C. there would be no organized way for firms to issue stock. D. investment banks would no longer play a role in handling stocks.
Given the indifference map and budget constraint lines below, what is the demand curve for sweaters?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay
A. $0. B. $40. C. $60. D. $75.
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