If an unregulated electric company is a monopolist, faces demand of Q = 100 - 50P, and has constant total costs, the profit-maximizing level of output is
a. 50
b. 100
c. 25
d. 12.5
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If the Fed decides to sell T-bills, it increases the supply of T-bills. How will this affect the price of T-bills and the interest rate?
A. T-bill prices fall and interest rates fall. B. T-bill prices rise and interest rates rise. C. T-bill prices rise and interest rates fall. D. T-bill prices fall and interest rates rise.
The M2 multiplier in the United States is currently about
A) 16. B) 23. C) 4. D) 50. E) 1.
Which statement best summarizes the perspective from which economic theory explains social occurrences? Economic theory assumes
A) gains and losses will eventually cancel out. B) individuals make choices consistent with their goals. C) the law of averages holds in the long run. D) the value of anything is equal to its price. E) whatever people want is what they ought to be able to buy.