Refer to the information provided in Figure 10.1 below to answer the question(s) that follow. 
Figure 10.1 Refer to Figure 10.1. This firm is currently hiring 16 workers and paying a wage of $10. This firm should
A. reduce employment to 14 workers to increase profits.
B. reduce employment to 15 workers to increase profits.
C. increase employment to 17 workers to increase profits.
D. do nothing because it is maximizing profits.
Answer: B
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The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, how much did households spend on nondurables and services?
A. 300 B. 700 C. 1,300 D. 1,000
When confronted with rational expectations regarding changes in monetary policy, the short-run Phillips curve may be vertical
Indicate whether the statement is true or false
Joe's demand for spring water can be represented as p = 10 - Q (where p is measured in $/gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is
A) $0. B) $50. C) $100. D) unknown based upon the information provided.
When income effects are small:
A. there is no difference between the uncompensated demand curve and the uncompensated demand curve. B. the uncompensated demand curve will be relatively far from the compensated demand curve. C. the compensated demand curve will intersect the uncompensated demand curve. D. the uncompensated demand curve lies close to the compensated demand curve.