The Lucas critique indicates that
A) advocates of discretionary policies' criticisms of rational expectations models are well-founded.
B) advocates of discretionary policies' criticisms of rational expectations models are not well-founded.
C) expectations are important in determining the outcome of a discretionary policy.
D) expectations are not important in determining the outcome of a discretionary policy.
C
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When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________
A) falls; increases B) falls; does not change C) rises; decreases D) rises; increases E) falls; decreases
Statistical discrimination:
A. is malicious. B. is profitable but not malicious. C. cannot persist because of competition. D. explains all occupational discrimination.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is
A. -$250. B. -$150. C. -$100. D. -$50.
If the demand curve is more elastic than the supply curve, then:
A. tax incidence will be shared equally by buyer and seller. B. the sellers will bear a greater tax incidence than buyers. C. the buyers will bear a greater tax incidence than sellers. D. None of these is true.