A production possibilities curve shows the various combinations of two outputs that:
a. consumers would like to consume.
b. producers would like to produce
c. an economy can produce.
d. an economy should produce.
c
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________ in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right B) An increase; left C) A decrease; right D) A decrease; left
Answer the following statements true (T) or false (F)
1. Predatory pricing, such as the high price of pharmaceuticals, is legally protected under patent law. 2. If a monopolist chooses a low level of output, it can charge only a relatively low price. 3. In the real world, a monopolist can use marginal revenue and cost information to determine the profit-making combination of quantity and price because information on total revenues and costs is often not available. 4. Allocative efficiency refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. 5. One type of an imperfectly competitive market is called monopolistic competition. Monopolistically competitive markets feature a large number of competing firms, but the products that they sell are not identical.
Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. 
Figure 12.5
Refer to Figure 12.5. A firm produces hula hoops in a perfectly competitive market and currently produces and sells 100 per week. At this production quantity of 100 per week, society would be best served
A. if the price was higher than $10 per hula hoop. B. if the price was lower than $10 per hula hoop. C. if the price remained at $10 per hula hoop. D. Society cannot be best served at a production quantity of 100, regardless of the price per hula hoop.
If consumers are insensitive to price changes for a particular good, their demand for the good is said to be __________.
Fill in the blank(s) with the appropriate word(s).