Refer to Figure 11-17. Assume that production isoquants are convex. Total cost and output produced must increase for each of the following movements except one. Which movement is the exception?
A) point a to point b B) point b to point c C) point b to point d D) point a to point c
B
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Demand is elastic if
A) consumers respond strongly to changes in the product's price. B) a large percentage change in price brings about a small percentage change in quantity demanded. C) a small percentage change in price brings about a small percentage change in quantity demanded. D) the quantity demanded is not responsive to price changes. E) the demand curve is vertical.
Private property rights are important because:
a. they create incentives for people to improve their standard of living. b. the Constitution says so. c. they allow students to choose their major field of study in college. d. an economy cannot function without them. e. goods cannot be produced without them.
This graph depicts the demand for a normal good. 
A shift from A to B in the graph shown might be caused by:
A. an increase in the good's price. B. a decrease in the price of a complement. C. a decrease in the price of a substitute. D. an increase in the price of a complement.
If welfare benefits equal the poverty gap for each household in poverty, then the
A. Production possibilities curve will shift to the right. B. Poor have a strong incentive to begin working. C. Effective marginal tax rate for welfare recipients is 100 percent. D. The poverty gap will become greater.