If exports are $10 trillion and imports are $10.5 trillion, adding net exports to the aggregate expenditures (AE) line that includes consumption, investment, and government spending will cause the AE line to:
A. start at the same point on the vertical axis but will have a flatter slope.
B. start at the same point on the vertical axis but will have a steeper slope.
C. shift up by $0.5 trillion and the new line will be parallel to the original line.
D. shift down by $0.5 trillion and the new line will be parallel to the original line.
Answer: D
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Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $150 B. $200 C. $75 D. $100
The difference between interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in a given country is called:
A) unilateral transfers. B) net investment income. C) capital expenditures. D) none of the above.
John Maynard Keynes developed his economic theories in the
A. 1900s. B. 1890s. C. 1930s. D. 2000s.
For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A. a normal rate of return must be paid to the owner. B. the industry will be a closed shop. C. the wage rate offered the newest employee must be paid to all workers. D. there is not good factor substitution in a monopsony.