A decrease in aggregate demand in the short run will reduce:
A. Both real output and the price level
B. The price level and increase the real domestic output
C. The real domestic output and have no effect on the price level
D. The price level and have no effect on real domestic output
A. Both real output and the price level
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Refer to the figure below. There would be an excess supply of 25 at a price of ________. 
A. $35 B. $20 C. $45 D. $50
Suppose early Friday morning the economics club buys 200 donuts at 25 cents each, and plans to sell all of them later in the day on campus for 50 cents each
Only 60 donuts are sold at 50 cents, however, and by early afternoon the club is seen trying to unload the remaining donuts for 10 cents each. What can we conclude? A) The club was clearly engaging in predatory pricing of donuts. B) The club was clearly selling below cost. C) The club clearly misjudged the demand for donuts. D) All of the above are true.
Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases. B) Increasing marginal returns is due to greater efficiency from specialization in the production process. C) The law of diminishing returns applies in the short run. D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
Variable factors of production are the inputs that a manager:
A. may adjust in order to alter sales. B. cannot adjust in the short run. C. cannot adjust in the long run. D. may adjust in order to alter production.