Figure 8.4 depicts demand and costs for a monopolistically competitive firm. At the profit-maximizing output level:
A. the firm is making a positive economic profit.
B. the firm is earning a zero economic profit.
C. the firm is earning a negative economic profit.
D. There is not sufficient information.
Answer: A
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If a firm has established monitoring devices that have a 50% chance of detecting shirking, and an employee gains $5,000 from shirking, the employer can deter shirking by having employees post a bond equal to
A) $2,500. B) $5,000. C) $10,000. D) $50,000.
In the circular-flow diagram, firms own the factors of production and use them to produce goods and services
a. True b. False Indicate whether the statement is true or false
The demand curve shown below has four points depicting possible total market oligopoly outcomes of quantity and price. For the given demand and price coordinates labeled A-D, pick the matching oligopoly models that lead to these comparative outcomes. 
A. A = Bertrand: B = Cournot: C = Stackelberg: D = Shared Monopoly B. A = Shared Monopoly: B = Cournot: C = Stackelberg: D = Bertrand C. A = Cournot: B = Bertrand: C = Stackelberg: D = Shared Monopoly D. A = Shared Monopoly: B = Cournot: C = Bertrand: D = Stackelberg
The relative poverty line defines poverty:
A. in relation to the income of the rest of the population. B. based on the expenditure on food relative to total income. C. as the price of basic food, clothing, shelter and utilities, and adjusts for geographic differences in the cost of living. D. None of these is true.