The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will decrease if the price level
a) increases by less than expected so that firms believe the relative price of their output has decreased.
b) increases by less than expected so that firms believe the relative price of their output has increased.
c) increases by more than expected so that firms believe the relative price of their output has increased.
d) increases by more than expected so that firms believe the relative price of their output has decreased.
Ans: a) increases by less than expected so that firms believe the relative price of their output has decreased.
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Which of the following transactions would take place in the underground economy?
A) Samuel tells his wife he is going to work but really goes to the local casino. B) Tanisha bought a tablet computer for $269 but decided to sell it to her sister instead of keeping it. C) Laurie buys a case of wine at a liquor store, not realizing that 15% of the purchase price goes to the government as tax revenue. D) Bailey makes beef jerky and sells it at a local flea market for cash to avoid paying taxes.
The market equilibrium quantity:
A. is sometimes the socially optimal quantity B. is the socially optimal quantity C. maximizes total economic surplus D. is not the socially optimal quantity
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The slope of isocost AB is
A. -1. B. 0. C. 1. D. indeterminate from this information, as the prices of capital and labor are not given.
If real GDP in 2018 (using 2009 prices) is lower than nominal GDP of 2017, then
A) prices in 2018 are lower than prices in 2017. B) nominal GDP in 2018 equals nominal GDP in 2017. C) prices in 2018 are higher than prices in 2017. D) real GDP in 2018 is larger than real GDP in 2017.