Point A in the figure below is: 
A. inefficient since it produces 20 units of output at a cost greater than the minimum cost.
B. inefficient since it produces 10 units of output at a cost greater than the minimum cost.
C. efficient since it produces 20 units of output at the lowest possible cost.
D. efficient since it produces 10 units of output at the lowest possible cost.
Answer: A
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Assuming all else equal, a rise in the rate of interest:
A) results in a fall in the cost of borrowing. B) results in a fall in the amount of interest accumulated on a loan. C) results in a fall in the quantity of credit demanded. D) results in an increase in the number of potential debtors.
Which of the following is an example of a pure private good?
A) a lighthouse B) burritos C) a high school football game D) redwood forests
Due to inflation, nominal prices are usually
A) equal to real prices. B) smaller than real prices. C) larger than real prices. D) a constant proportion different from real prices.
Which of the following are not methods of dealing with externalities?
a. relying on voluntary compliance b. creating new property forms c. taxing the output of industries that pollute d. creating legal environmental standards e. increasing public spending on cleanup/reduction