Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. 
Figure 12.5
Refer to Figure 12.5. A firm produces hula hoops in a perfectly competitive market and currently produces and sells 100 per week. At this production quantity of 100 per week, society would be best served
A. if the price was higher than $10 per hula hoop.
B. if the price was lower than $10 per hula hoop.
C. if the price remained at $10 per hula hoop.
D. Society cannot be best served at a production quantity of 100, regardless of the price per hula hoop.
Answer: B
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One source of economic growth is:
a. producing inside the production possibilities curve. b. producing outside the production possibilities curve. c. increasing capital. d. discouraging profit-seeking entrepreneurs.
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.
Which of the following would cause the money supply in the United States to expand?
a. a decrease in reserve requirements b. an increase in the discount rate c. the sale of bonds by a Federal Reserve bank d. an increase in the world supply of gold
Name a country mentioned in class that today is experiencing hyperinflation
a. Germany b. China c. Venezuela d. Honduras