If the probability a firm is being embezzled is 2 percent and the estimated potential cost to the firm from embezzlement is $100,000, what is the expected cost of the embezzlement?
A) -$2,000
B) $200
C) -$200
D) $2,000
D) $2,000
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
While eating at Alex's "Pizza by the Slice" restaurant, Clara experiences diminishing marginal utility. She received 10 utils from consuming the first slice of pizza and would only receive 5 utils from consuming a second slice, at the same price. Based on this information we can conclude that
A. Even if Clara buys a second slice, she will not buy a third slice. B. Clara will not eat a second slice, even if it is given to her at no charge. C. Alex may have to lower the price to convince Clara to buy a second slice. D. Clara will definitely want to buy a second slice of pizza.
Describe the impact of contractionary fiscal policy (such as a decrease in government spending) upon Real GDP in both a closed economy and an open economy. In which type of economy would the change in Real GDP be greater?
A single firm that charges the monopoly price in the market earns $800. If another firm successfully enters the market, the incumbent's profits fall to $500 and the entrant earns $450. If the incumbent engages in limit pricing, its profits are $600. For what interest rate, i, is limit pricing a profitable strategy for the incumbent?
A. i > 1.5 B. 0.5 < i < 1.0 C. i < 0.5 D. 1.0 < i < 1.5