During the German hyperinflation after World War I, transactions costs skyrocketed. As a result, not surprisingly, output
A) increased dramatically.
B) grew at a much smaller pace than prior to the war.
C) did not change.
D) declined sharply.
Ans: D) declined sharply.
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Based on the figure below, an economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing and the long-run equilibrium would be at point ________. 
A. expansionary; C; B B. recessionary; B; C C. expansionary; B; C D. recessionary; C; B
If the market supply curve and market demand curve for a good intersect at 600,000 units and there are 10,000 identical firms in the market, then each firm is producing
A) 600,000 units. B) 60,000,000,000 units. C) 60,000 units. D) 60 units. E) 10,000 units.
In their relationship with stockholders, a firm's managers act
A) as agents. B) as principals. C) in loco parentis. D) as proprietors.
Employment of labor in a country other than the firm's home country is called
A) employing guest workers. B) outsourcing. C) employing non-naturalized workers. D) employing illegal aliens.