Point B in the figure below is: 
A. inefficient since it produces 20 units of output at a cost greater than the minimum cost.
B. inefficient since it produces 10 units of output at a cost greater than the minimum cost.
C. efficient since it produces 10 units of output at the lowest possible cost.
D. efficient since it produces 20 units of output at the lowest possible cost.
Answer: C
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Suppose a country has a real interest rate of 4 percent and an inflation rate of 3 percent. If the income tax rate is 20 percent, then the after-tax real interest rate is
A) 2.6 percent. B) 7.0 percent. C) 5.6 percent. D) 4.0 percent. E) 1.4 percent.
Which statement is true?
A. The monopolistic competitor has a perfectly elastic demand curve. B. The monopolistic competitor may make a profit in the long run. C. The monopolistic competitor operates at the minimum point of her ATC curve. D. None of these statements are true.
If the stock of capital of a nation is ________ while the population ________, the nation can produce more output, but output per worker falls.
A. fixed; decreases B. declining; decreases C. fixed; increases D. fixed; remains stable
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
The estimated QUARTERLY increase in price is ________, and the estimated ANNUAL increase in price is ________ .
A. $0.60; $2.40 B. $1.50; $6.00 C. $0.80; $3.20 D. $1.40; $4.00 E. none of the above