Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line
A. shifts out parallel to the original isocost line.
B. rotates outward on the Y-intercept.
C. shifts in parallel to the original isocost line.
D. rotates outward on the X-intercept.
Answer: A
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Refer to the figure below. What is the Nash equilibrium of this game? 
A. A chooses Up, B chooses Right B. A chooses Up, B chooses Left C. A chooses Down, B chooses Left D. A chooses Down, B chooses Right
Monetarists consider timing variations in the relationship between money supply changes and income changes to be
A) a fundamental problem of counter-cyclical monetary policy. B) inconsequential relative to the problem of instability in the velocity of money. C) a fundamental long-run problem but not a significant problem in the short run. D) offset by predictable changes in the money multiplier.
In a monopolistically competitive market, entry into the industry
A) is relatively easy. B) is blocked. C) is difficult due to extensive government regulation. D) is as difficult as entry into a monopoly.
In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced
a. both structural unemployment and the natural rate of unemployment. b. structural unemployment but not the natural rate of unemployment. c. both frictional unemployment and the natural rate of unemployment. d. frictional unemployment but not the natural rate of unemployment.