17. Which of the following is an example of crowding out?
(A) An increase in government spending increases interest rates, causing investment to fall.
(B) A decrease in private savings increases interest rates, causing investment to fall.
(C) A decrease in the money supply increases interest rates, causing investment to fall.
(D) An increase in taxes increases interest rates, causing investment to fall.

1. A monopolistically competitive industry is characterized by (A) many firms selling products that are similar but not identical. (B) many firms selling identical products. (C) a few firms selling products that are similar but not identical. (D) a few firms selling highly different products.

2. Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed? (A) 2.54 million. (B) 2.76 million. (C) 3.68 million. (D) 8 million.

3. Which of the following statements is not correct? (A) In the long run, there are no fixed costs. (B) Marginal cost is independent of fixed costs. (C) Economies of scale is a short-run concept. (D) Diminishing marginal product explains increasing marginal cost.

4. Monetary neutrality implies that an increase in the quantity of money will (A) increase employment. (B) increase the real interest rate. (C) increase the incentive to save. (D) increase the price level.

5. Minimum wages create unemployment in markets where they create a (A) shortage of labor. Unemployment of this type is called frictional. (B) shortage of labor. Unemployment of this type is called structural. (C) surplus of labor. Unemployment of this type is called frictional. (D) surplus of labor. Unemployment of this type is called structural. 

6. A firm in a competitive market has the following cost structure:If the market price is $4, this firm will(A) produce 2 units in the short run and exit in the long run.(B) produce 3 units in the short run and exit in the long run.(C) produce 4 units in the short run and exit in the long run.(D) shut down in the short run and exit in the long run.

複選題7. Which of the following is included in the calculation of GDP? (A) The purchase of services from a tutor who holds citizenship outside the country but resides within the country. (B) The purchase of a new edition of a foreign textbook that was produced in a different nation. (C) The purchase of paper supplies by a textbook company for the production of new textbooks. (D) The purchase of a used textbook from a friend who took the same class last year.

8. A consumer chooses an optimal consumption point where the (A) ratio of the prices equals one. (B) marginal rate of substitution exceeds the relative price ratio. (C) slope of the indifference curve equals the slope of the budget constraint. (D) All of the above are correct.

9. Stagflation refers to: (A) a reduction in inflation. (B) a liquidity trap. (C) a simultaneous reduction in inflation and expansion in unemployment. (D) a simultaneous expansion in inflation and expansion in unemployment. 

10. A profit-maximizing monopolist would create a deadweight loss to society valued at  (A) $12. (B) $24. (C) $42. (D) $84.

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