A price floor policy establishes a minimum price for a market. Which of the following results from a binding price floor?
A) Equilibrium
B) Excess demand
C) Excess supply
D) Shortage
C
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If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the price index for the base year is
A. 100. B. (12000/10000)*100=120. C. (10000/12000)*100=83.33. D. unknown given this data.
If an individual's total utility from consuming two goods decreases, then there must be
A. a downward rotation of the individual's indifference curve. B. an outward shift of the individual's indifference curve. C. an inward rotation of the individual's indifference curve. D. an inward shift of the individual's indifference curve.
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If the firm produces the profit-maximizing level of output and sells it at the profit-maximizing price, the firm ________ of $400.
A. earns a profit B. suffers a loss C. has total cost D. has total revenue
Refer to the diagram that applies to a private closed economy. The APC is equal to 1 at income level:
A. J.
B. M.
C. H.
D. G.