Innovations that lower production costs or create new products:
A. are rare in competitive industries.
B. discourage new firms from entering the industry.
C. often generate short-run economic profits that do not last into the long run.
D. usually generate long-run economic profits for the innovator.
Answer: C
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Business cycles are the result of
A) regular shifts of the AD curve only. B) irregular shifts of the SAS curve only. C) regular shifts of both the AD and SAS curves. D) irregular shifts of both the AD and SAS curves.
The institution that sets the nation's monetary policy is called the
According to the above table, Gross Domestic Product is
A. $13,315. B. $13,965. C. $14,140. D. $12,115.
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. At the market price of $18, if this farmer produces the profit-maximizing quantity, what profit will he make?
A. $0 B. $2,000 C. $700 D. indeterminate from this information