In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?
A. $4,000
B. $8,000
C. $12,000
D. $16,000
Answer: A
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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
How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue and marginal costs?
A. The profit-maximizing level of output will be where marginal cost is greatest over marginal revenue B. The profit-maximizing level of output will be where marginal revenue is greatest over marginal cost C. The profit-maximizing level of output will be where marginal revenue intersects marginal cost D. Cannot be determined
Given the information in the figure above, Liz ________ benefit from trade with Joe because ________
A) can; each of them has a comparative advantage in one of the goods B) can; each of them has an absolute advantage in one of the goods C) cannot; she has an absolute advantage in both goods D) cannot; she has a comparative advantage in both goods E) can; Joe is more productive in producing one of the goods
The profit-maximizing firm will operate at an output of ______.
A. OI
B. OJ
C. OK
D. OL