Suppose that MU x /P x exceeds MU y /P y . To maximize utility, the consumer who is spending all her money income should buy:
A. less of X only if its price rises.
B. more of Y only if its price rises.
C. more of Y and less of X.
D. more of X and less of Y.
Answer: D
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In the short run, marginal cost is minimized when
A) MPL is maximized. B) MPL equals zero. C) APL is maximized. D) APL equals zero.
The Social Security Act was passed:
a. in 1955. b. just after World War II. c. in 1935. d. in 1964.
In the competitive price-taker model, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is
a. indeterminate. b. an upward-sloping curve. c. a downward-sloping curve. d. the same as the firm's demand curve.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C