Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 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 $100.
A. suffers a loss
B. earns a profit
C. has a marginal cost
D. has an average variable cost
Answer: A
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If the number of employed workers in an economy is 8 million, the number of potential workers in the economy is 12 million, and the number of adults not in the labor force is 1 million, the number of unemployed people in the economy will equal:
A) 3 million. B) 5 million. C) 1 million. D) 7 million.
Use the classical (RBC) IS—LM—FE model to show the effects on the economy of a temporary adverse supply shock; for example, an increase in the price of oil
You should show the impact on the real wage, employment, output, the real interest rate, consumption, investment, and the price level.
The major similarity between monopolistic competition and perfect competition is
A) the shape of the demand curve. B) that both assume many buyers and sellers. C) price equals marginal revenue in each. D) both assume products are differentiated.
No matter what the price of orange juice is , Lili spends $20 a week on orange juice. We can conclude that the absolute value of the price elasticity of demand for orange juice for Lili is
A. greater than 1. B. equal to 1. C. none of these. D. less than 1.