If the demand for electricity is inelastic, then if the local electric company wants to increase its total revenue, it should ________ its price.
A. frequently change
B. not change
C. raise
D. lower
Answer: C
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This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. 
The socially optimal number of bags of litter removed from the roadside each day is:
A. 20. B. 15. C. 10. D. 30.
The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is
A) $0. B) $5,000. C) $10,000. D) $20,000.
The short-run aggregate supply curve (in the absence of misperceptions)
A) is vertical. B) slopes upward. C) is horizontal. D) slopes downward.
A tax cut will unambiguously lower income-tax revenue
Indicate whether the statement is true or false