A firm will increase its production when
a. its marginal revenue rises.
b. its marginal cost rises.
c. its fixed costs fall.
d. the demand for its product falls.
a. its marginal revenue rises.
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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
Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a
A) perpendicular line. B) line with slope equal to zero. C) line that has positive slope. D) line that has a negative slope.
Suppose the government breaks up a single-price monopoly and turns it into a perfectly competitive industry
What will happen to price and the quantity produced? What will happen to the monopoly's economic profit and the deadweight loss associated with the monopoly?
The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that
A) workers' effort may depend on the unemployment rate and the real wage. B) during a recession, labor supply will decrease, reducing the efficiency wage. C) during a recession, productivity will fall, causing a reduction in the efficiency wage. D) during a boom, labor demand will increase, causing the efficiency wage to rise.