If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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Homer and Marge both enjoy lasagna and wine. Homer's utility function is given by U(L,W) = 12L + 4W. Marge's utility function is given by U(L,W) = 2L + 2W. In each function, L stands for plates of lasagna and W stands for glasses of wine. Would Homer and Marge agree to a trade in which Homer gives Marge a plate of lasagna in exchange for two glasses of wine?
What will be an ideal response?
Given the table below, what is average fixed cost when 300 units of output are produced? 
A. $500 B. $160 C. $3.00 D. $0.60 E. none of the above
Keynesians reject the influence of monetary policy on the economy. One argument supporting this Keynesian view is that the:
A. money demand curve is horizontal at any interest rate. B. aggregate demand curve is nearly flat. C. investment demand curve is nearly vertical. D. money demand curve is vertical.
The product price is $10 per unit and the cost per worker is $540. How many workers will the firm employ?
A profit-maximizing firm operates in purely competitive product and resource markets, with the following resource and production schedules.
A. 4
B. 5
C. 6
D. 7