Given the shutdown rule, what does the firm's short-run supply curve look like? It is the section of the:
A. MC curve that lies above the ATC curve.
B. MC curve that lies above the AVC curve.
C. AVC curve to the right of its minimum.
D. ATC curve to the right of its minimum.
Answer: B
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In the real intertemporal model, an adverse sectoral shock acts to
A) reduce real output and reduce the real interest rate. B) increase real output and increase the real interest rate. C) increase real output and reduce the real interest rate. D) reduce real output and increase the real interest rate.
The price elasticity of supply is 0.6. This means that
A) a $10 increase in price would increase quantity supplied by 60. B) a 150 percent increase in price would increase quantity supplied by 90 percent. C) a 50 percent increase in quantity will occur when price increases by 30 percent. D) a 10 percent increase in quantity will occur when price increases by 6 percent.
U.S. interest payments on the federal debt as a percentage of federal outlays are lower today than in the 1990s
a. True b. False Indicate whether the statement is true or false
In Figure 22.1 and ignoring any possible externalities, the net benefit to society of this market is 
A. ABC B. 0ACQ* C. BP*C D. 0P*CQ*