Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. a decrease in the demand for pasta.
B. an increase in the quantity of pasta demanded.
C. an increase in the demand for pasta.
D. a decrease in the quantity of pasta demanded.
Answer: C
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When drawn against the real interest rate, the optimal investment schedule shifts to the right if
A) current total factor productivity z increases. B) current total factor productivity z decreases. C) future total factor productivity z' increases. D) future total factor productivity z' decreases.
Which of the following makes a firm's resources hard to imitate?
a. They don't flow from the firm's unique history b. The link between resources and advantages is difficult to discern c. They aren't socially complex d. All of the above
The investment demand curve as a function of various possible interest rates for the entire economy is assumed to be:
a. positively sloped. b. negatively sloped. c. rising, then falling. d. falling, then rising.
Refer to the information provided in Figure 12.1 below to answer the question(s) that follow. 
Figure 12.1 Refer to Figure 12.1. This competitive firm is currently at Point A on the ATC curve. The firm's move toward an output where ATC will be at point B will make the economy
A. less stable. B. more fair and the distribution of outcome more equitable. C. more stable. D. less efficient.