Use the following graph of total revenues to answer the question below. 
When the seller is earning maximum revenues from selling Product X, the demand is
A. inelastic.
B. perfectly inelastic.
C. elastic.
D. unit-elastic.
Answer: D
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When the price of a good changes, other things constant, what occurs?
A) The supply curve shifts to the right. B) The supply curve shifts to the left. C) The supply curve becomes flatter. D) The supply curve becomes steeper. E) Only quantity supplied changes.
Which of the following is a property of a public good?
a. A public good is free from externalities. b. Many individuals benefit simultaneously. c. A public good is not subject to free riders. d. A public good is established by law.
The efficient level of pollution abatement is where:
A. the marginal benefit of abatement is greater than its marginal cost. B. the marginal benefit of abatement is less than its marginal cost. C. the marginal benefit of abatement is equal to its marginal cost. D. None of these
Pigou buys a house for $500,000, rents it for $2,000 per month for four years, and then sells it for $600,000. What is Pigou's per-year rate of return?
A. 4.8 percent. B. 9.8 percent. C. 20 percent. D. 39.2 percent.