If people begin to generally feel better about the future ________
A) autonomous consumption should rise
B) autonomous investment should rise
C) the AD curve will shift to the right
D) all of the above
E) none of the above
D
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Refer to the figure below. 
If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A. offered reduced rates. B. kept its rates high. C. chose either strategy because it will have the same payoff in either case. D. agreed with Row Resorts to reduce their rates at exactly the same time.
Which of the following methods of importing technological change is available to a poor country which Gordon describes as being caught in the "poverty trap"?
A) Copy modern products made in rich countries. B) Purchase imported machinery that embodies the latest technology. C) Obtain investment by foreign firms. D) None of the above.
Suppose that your local government provides drinking water and charges a 10 cent per gallon fee. Explain whether or not the drinking water is a public good.
What will be an ideal response?
Consider the straight-line demand curve illustrated in the figure above. At a price of $6, demand is
A) inelastic. B) elastic. C) unit elastic. D) More information is needed to determine if the demand is elastic, unit elastic, or inelastic.