A beneficial supply shock would cause the FE line to
A. shift to the right.
B. shift to the left.
C. remain unchanged.
D. remain unchanged if the shock is temporary; shift to the right if the shock is permanent.
Answer: A
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Refer to the following table showing a monopolist's demand schedule: 
If price falls from $20 to $10, then
A. MR = -$30, and demand is inelastic. B. MR = -$10, and demand is inelastic. C. MR = $30, and demand is elastic. D. MR = $10, and demand is elastic. E. none of the above
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting
A) 1/12 of a snowboard. B) 1/8 of a snowboard. C) 1/3 of a snowboard. D) 3 snowboards.
In Figure 11.1, a decrease in the marginal propensity to save is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
The last trade bill to set overall tariff rates for the United States was the Smoot-Hawley Tariff of 1930
Indicate whether the statement is true or false