Total income is defined as
A) the total amount earned by all resource owners.
B) the sum of the total receipts of firms and the amount earned by households.
C) the sum of the total receipts of firms less the amount of tax that must be paid.
D) the total receipts of firms before taxes.
A
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An increase in bond prices is usually accompanied by
A. an increase in the opportunity cost of holding money. B. an increase in the quantity demanded of money C. a decrease in the quantity demanded of money. D. an increase in interest rates.
Assuming that the demand curve for cookies is downward sloping, if the price of cookies falls from $1.50 to $1.25 per dozen,
A. then the demand for cookies will fall. B. then the demand for cookies will rise. C. then a larger quantity of cookies will be demanded. D. then a smaller quantity of cookies will be demanded.
Which of the following statements best describes firms under monopolistic competition?
a. There is little price or quality competition. b. The firms compete, using quality, location, advertising, and price. c. Firms do not compete using advertising. d. There is little competition between firms.
Using Figure 1.4, we know the production of 9 units of soda and 1 unit of pizza is 
A. impossible because we have the technology but do not have the resources. B. impossible because we have the resources but do not have the technology. C. possible, but there would be unemployment. D. possible, but only if all resources were fully employed.