The accompanying figure shows Avery's weekly production possibilities curve for scarves. 
Avery's PPC would shift outward if she:
A. devotes less time to knitting each week.
B. knits fewer red scarves and more blue scarves each week.
C. devotes more time to knitting each week.
D. knits more red scarves and fewer blue scarves each week.
Answer: C
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Which of the following must be true about functions in the duality picture:
A. The utility function is homogeneous of degree 1. B. The indirect utility function is homogeneous of degree 1 in income. C. The uncompensated demand functions are homogeneous of degree 1. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c) G. All of the above. H. None of the above.
If the government's budget deficit increases and the Ricardo-Barro effect does not apply
A) the real interest rate rises. B) investment increases. C) investment decreases. D) Both answers A and C are correct.
Firms that coordinate economic activities to reduce competition is considered illegal per se.
Answer the following statement true (T) or false (F)
Extremely rapid rates of money growth are usually the result of:
A. sharp increases in productivity. B. rapid population growth. C. large government budget deficits. D. excessively high interest rates.