The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: 
Assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30. At the prices and income given above, what is the income elasticity?
A. 0.21
B. 0.31
C. -1.62
D. 1.50
E. -0.87
Answer: B
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Which of the following will discourage investment?
A) high and variable rates of inflation B) well-defined property rights C) a low and steady rate of inflation D) low tax rates
The discouraged worker effect reflects
A. an increase in the labor force. B. a decline in the measured employment rate. C. a decrease in the population. D. an increase in the measured employment rate.
Which of the following is true?
i. In an unregulated market with an external benefit, consumers don't take it into account and consume less than the efficient quantity. ii. Marginal social cost equals marginal private cost minus marginal external cost. iii. An unregulated market produces more than the efficient quantity of a good with an external cost. A) Only i B) Only ii C) Only iii D) i and ii E) i and iii