When marginal utility is negative, total utility
A. increases at a decreasing rate.
B. is at its maximum.
C. decreases.
D. is zero.
Answer: C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to increase the sales for the coffee, assuming that tea and coffee are substitutes, which of these strategies can it employ?
a. Increase the price for the tea b. Offer free expedited shipping on the coffee c. Advertise the tea more heavily d. Both A&B
Refer to the following model.
yt = 
0 + 
0st + 1st-1 + 2st-2 + 3st-3 + ut
0+ 1+ 2+ 3 represents:
A. the short-run change in y given a temporary increase in s.
B. the short-run change in y given a permanent increase in s.
C. the long-run change in y given a permanent increase in s.
D. the long-run change in y given a temporary increase in s.
Referring to Table 4.2, Box P should be filled with 
A. $9.00. B. $0. C. $67. D. $17.