An increase in the interest rate leads to:
a. an increase in planned inventories.
b. an increase in GDP.
c. an increase in unplanned inventories.
d. an increase in consumption.
e. none of the above.
C
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Refer to Tax Problem. The deadweight loss due to a $10 per unit consumption tax is
Consider a perfectly competitive market were demand is Q = 100 - P and Supply is Q = P - 10. a. zero. b. $10. c. $25. d. $50.
Which of the following statements is CORRECT?
I. The exchange rate is a price. II. The exchange rate is different from other prices because it is NOT determined by supply and demand. A) only I B) only II C) I and II D) neither I nor II
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.
Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC0 to MC1. A likely explanation for this is that
A. the supply of a variable input decreased. B. the price of a variable input decreased. C. the productivity of a variable input declined. D. the demand for the firm's product decreased.