From a Keynesian perspective, the way out of recession is to
A. Get consumers to spend more on goods and services.
B. Get consumers to spend less on goods and services.
C. Use monetary restraint.
D. Wait for the economy to fix itself.
Answer: A
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When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. Its elasticity of demand coefficient (in absolute terms) must be: a. zero
b. greater than one. c. less than one. d. infinitely large.
Which of the following would cause the price level to rise and output to fall in the short run?
a. an increase in the money supply b. a decrease in the money supply c. an adverse supply shock d. a favorable supply shock
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. What is the profit-maximizing output choice for the firm?
A. 4,000 units B. 6,000 units C. 5,000 units D. 3,000 units
When an individual is judged by the characteristics of the groups to which he or she belongs rather than on his or her own characteristics, it is called:
A. adverse selection. B. statistical discrimination. C. moral hazard. D. the lemons model.