Consider the monopoly in the figure below with price regulated at $20 per unit. Consumer surplus at the regulated price is: 
A. $500.
B. $2,300.
C. $3,920.
D. There is insufficient information to determine consumer surplus.
Answer: B
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Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda
Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?
Which of the following is not a possible source of instability in velocity in the Monetarist model?
a. financial innovation. b. changes in monetary policy c. changes in interest rates d. credit cards.
Which of the following is correct concerning recessions?
a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large increases in investment spending. c. They are any period when real GDP growth is less than average. d. They tend to be associated with rising unemployment rates.
Which of the following components are necessary parts of an economic hypothesis?
a. predictable; testable; changing circumstances b. reflection; historical accuracy; constant circumstances c. predictable; testable; constant circumstances d. reflection; historical accuracy; changing circumstances