When an individual withdraws funds from a checking account the:
A. bank's balance sheet shrinks and so does the Fed's balance sheet.
B. bank's balance sheet shrinks but the size of the Fed's balance sheet increases.
C. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected.
D. size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.
Answer: C
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Competition results in the efficient product mix because
A) producers are setting MRT equal to minus the price ratio while consumers are setting MRS equal to minus the price ratio ensuring that MRT will equal MRS. B) consumers are on the contract curve. C) the slope of the production possibility frontier will equal the slope of the contract curve. D) the distribution of the final output is Pareto efficient.
The labor force equals the
a. number of people employed. b. number of people employed plus the number of people unemployed. c. number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week. d. adult population.
The air route from Dallas to Mexico City is served by more than one airline. The demand for tickets from American Airlines for that route is probably
A) inelastic but more elastic than the demand for all tickets for that route.
B) elastic and more elastic than the demand for all tickets for that route.
C) inelastic and less elastic than the demand for all tickets for that route.
D) elastic but less elastic than the demand for all tickets for that route.
Refer to the information provided in Figure 17.2 below to answer the question(s) that follow. 
Figure 17.2 Refer to Figure 17.2. We would say that Sam is risk neutral based on his
A. present income. B. income potential. C. past income. D. utility from income.