Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume that the price of both goods X and Y are $1 each. Point D on the graph.
A. Is affordable but does not yield the highest utility possible.
B. Is affordable and is the optimal consumption bundle for this individual.
C. Lies on an indifference curve that is not obtainable.
D. Is not affordable.
Answer: A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face limited liability. B) As a sole proprietor, Torrie would have the ability to share risk with shareholders. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.
What are the macroeconomic implications from the recent increase in trend rate productivity?
What will be an ideal response?
In 1994, the Walt Disney Corporation ran a special promotion on tickets to Disneyland. Residents of southern California who lived near the amusement park were offered admission at the special price of $22
Other visitors to Disneyland were charged about $30. This practice is an example of: A) collusion. B) price discrimination. C) two-part tariff. D) bundling. E) tying.