Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $75 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should produce ________ personalized sweatshirts.
A. 0
B. 50
C. 70
D. 75
Answer: A
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An increase in the marginal propensity to save from .1 to .2 will cause
A) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. D) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output.
Which of the following is NOT a criticism of international institutions such as the IMF, the World Bank, or the WTO?
A) They violate national sovereignty by imposing unwanted domestic policies. B) They fail to understand the effects of their policies on the vulnerable. C) Their decision-making is biased in favor of underdeveloped nations. D) They ignore potentially large adjustment costs for developing nations of implementing their policies.
National income is derived from gross domestic product by
A) subtracting retained earnings from gross domestic product. B) adding personal taxes and depreciation to gross domestic product. C) subtracting depreciation from gross domestic product. D) adding personal income and transfer payments to gross domestic product.
The lowest level of unemployment compatible with price stability
A. Is estimated at between 0 and 2 percent unemployment. B. Is referred to as full employment. C. Allows for some cyclical unemployment. D. Is equal to the natural rate of unemployment plus the inflation rate.