A decrease in the money supply would cause the IS curve to ________ and the LM curve to ________.
A. shift down and to the left; shift up and to the left
B. be unchanged; shift up and to the left
C. shift down and to the left; be unchanged
D. be unchanged; shift down and to the right
Answer: B
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The majority of the members of the U.S. Congress want to retain the so-called Fairness Doctrine as a control over television and radio broadcasters because
A) competition by itself cannot produce fairness. B) government oversight is required to assure equal time for conflicting points of view. C) television and radio are local monopolies to a large extent. D) the air waves belong to the public. E) the doctrine gives more power and influence to members of Congress.
The annual rental rate for a machine is:
a. the yearly depreciation and maintenance costs for the machine. b. the yearly interest costs associated with owning the machine. c. the initial purchase price of the machine divided by the number of years the machine is expected to last. d. the sum of the yearly depreciation, maintenance, and interest costs associated with owning the machine.
The British economist A. C. Pigou did not do which of the following?
A. Write The Economics of Welfare in 1911 B. Offer an explanation of the market economy’s poor environmental performance C. Outline an approach to environmental policy still in favor with economists today D. Suggest that increases in the human population would ultimately lead to the collapse of renewable resources
In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. 
If the firm produces 40 units of output, what is average fixed cost?
A. $600 B. $120 C. $7.50 D. $25 E. none of the above