Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. Ann spends 8 hours of each day producing and 1 hour of each day stealing. It is probably the case for her that
A. at some point the MB/MC ratio for producing fell below the MB/MC ratio for stealing.
B. her MB/MC ratio for producing was always greater than her MB/MC ratio for stealing.
C. her MB/MC ratio for producing never changed, no matter how much or how little she produced.
D. her MB/MC ratio for stealing never changed, no matter how much or how little she stole.
E. There is not enough information to answer the question.
Answer: A
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Which of the following is false?
a. A true or pure monopoly exists where there is only one seller of a product for which no close substitute is available. b. The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called a natural monopoly. c. In monopoly, the market demand curve may be regarded as the demand curve for the firm because it is the market for that particular product. d. A monopoly firm is a price maker, and it will pick a price that is the highest point on its demand curve.
Expansionary fiscal policy will
a. shift the aggregate demand curve to the left. b. shift the aggregate demand curve to the right. c. not shift the aggregate demand curve d. shift the short-run aggregate supply curve to the left.
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
Use the following table to answer the question below.Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for Y is
A. 30. B. 25. C. 45. D. 40.