In the short run, a firm operating as a monopolistic competitor will produce to the point at which
A) MR = ATC.
B) MC = ATC.
C) P = MC.
D) MR = MC.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?
A) A, B, and C B) B, C, and D C) A, C, and D D) C and D
Refer to Table 2-16. If the two countries specialize and trade, who should export cell phones?
A) They should both be importing cell phones. B) Finland C) Estonia D) There is no basis for trade between the two countries.
Following the collapse of its housing and stock markets around 1990, the Japanese government ________
A) effectively managed the crisis, limiting the damage to the Japanese economy B) took only limited action in response to the crisis C) was able to rely on private initiatives in quickly reversing the course of GDP in the 1990s D) fixed the value of the yen to the Euro and pursued an aggressive monetary policy