Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $90 and is a monopolistically competitive firm. If the firm is attempting to maximize profits, its profit is
A. -$100.
B. -$175.
C. $0.
D. -$90.
Answer: D
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Money serves as a basic yardstick for measuring economic value (a unit of account), allowing
A. easy comparison of the relative prices of goods and services. B. goods and services to be exchanged with a double coincidence of wants. C. people to hold their wealth in a liquid form. D. governments to restrict the issuance of private monies.
Which of the following best describes the policy of the New Deal to combat the Great Depression?
(a) Taxation should be increased so as to eliminate the deficit in the federal budget. (b) Government spending should be reduced so as to give businesses confidence that the free enterprise system was not being replaced by big government. (c) The government should offset deficiencies in private spending with increased government spending in order to create jobs—any jobs. (d) Private enterprise should be replaced by government planning because the market system had failed to provide prosperity and economic growth.
Which of the following allows us to determine the value of average consumption spending?
a. leading economic indicators b. representative household analysis c. indexing d. ratio analysis
The elasticity of demand for labor will be less the
A) longer the time period. B) easier it is to substitute one input for another. C) less the demand elasticity for the final product. D) larger the share of total costs accounted for by labor.