Suppose a plaintiff hires a lawyer to represent her in a court case. She agrees to pay the lawyer a wage per hour
She knows precisely what the lawyer should do and how long each activity should take, and she can verify that the lawyer has correctly completed each activity. She can terminate the contract at any time. With this contract, A) the lawyer bears all the risk.
B) the risk is shared by the lawyer and the plaintiff.
C) production efficiency can be achieved.
D) production efficiency is impossible.
C
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Under monopolistic competition, firms produce ________ products and have prices ________ marginal cost.
A. differentiated; above B. differentiated; below C. homogenous; above D. homogenous; below
Which of the following causes the supply curve to shift to the left?
a. increase in consumer’s output prices b. increase in seller’s input prices c. decrease in consumer’s output prices d. decrease in seller’s input prices
In Figure 5.6, what profit would the monopolist earn? In the figure below, a monopolist would charge which price? 
A. a loss equal to its total fixed cost. B. zero profit. C. a loss greater than its total fixed cost. D. a positive profit.
Which of the following statements about the natural rate of unemployment is correct?
A) Currently, most economists think that the natural rate is between 5% and 6%. B) Currently, most economists believe the natural rate is zero. C) When unemployment is at its natural rate, then only frictional unemployment remains. D) When unemployment is at its natural rate, then only structural unemployment remains.