A decrease in net exports will cause a(n):
A. increase in aggregate demand.
B. decrease in aggregate supply.
C. increase in aggregate supply.
D. decrease in aggregate demand.
Answer: D
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The increase in the price of sugar created by the tariff will lead domestic production to increase by ________ tons per year, compared to when the economy is open without the tariff. 
A. 20 B. 10 C. 40 D. 30
If a country wants to keep a foreign currency undervalued against the domestic currency:
A) it will buy both the foreign and domestic currency. B) it will sell both the foreign and domestic currency. C) it will buy the domestic currency and sell the foreign currency. D) it will buy the foreign currency and sell the domestic currency.
Why do economists tend to create models in diagrammatic form?
a. Diagrams hide reality, and theory is an attempt to avoid reality. b. It is easier than building models out of physical objects. c. Economic reality cannot possibly be represented except in diagrams. d. Most economists are frustrated artists, and like to draw when possible. e. All of the above are correct.
Refer to Table 10.1. If the price of output is $2 per unit, the marginal revenue product of the eighth unit of labor is:
A. $10. B. $20. C. $310. D. $620.