An increase in the money supply will cause an increase in which of the following variables?
A) output
B) investment
C) consumption
D) all of the above
E) none of the above
D
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Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in France is
A) 0.33 pound of beef. B) 0.5 pound of beef. C) 2 pounds of beef. D) 3 pounds of beef.
A price elasticity of demand of 2 for a specific cola means that if the price increases 1 percent, the quantity demanded of the cola will decrease by 2 percent
a. True b. False
When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
A. long queues. B. lower excess demands. C. greater demand. D. higher prices.
Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label PI for "price index?" 
A. Box 4 B. Box 6 C. Box 5 D. Box 1