1. A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the production of the other good.
b. the economy abandons inefficient production methods in favor of efficient production methods.
c. government increases the amount of money in the economy.
d. there is a technological improvement.
2. Microeconomics is the study of
a. how government affects the economy.
b. how money affects the economy.
c. how individual households and firms make decisions.
d. how the economy as a whole works.
3. In the circular-flow diagram, which of the following is not a factor of production?
a. capital
b. land
c. money
d. labor
4. The term used to describe a situation in which markets do not allocate resources efficiently is
a. economic meltdown.
b. the effect of the invisible hand.
c. market failure.
d. equilibrium.
5. A rational decision maker takes an action only if the
a. average benefit is greater than the average cost.
b. marginal benefit is less than the marginal cost.
c. marginal benefit is greater than both the average cost and the marginal cost.
d. marginal benefit is greater than the marginal cost.

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today

The following information is needed to reconcile the cash balance for gourmet catering services. * a deposit of $5,600 is in transit. * outstanding checks total $1,000. * the book balance is $6,400 at february 28, 2019. * the bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent. * the bank balance at february 28, 2019 was $17,410. * a deposit of $400 was credited by the bank for $4,000. * a customer's check for $3,300 was returned for nonsufficient funds. * the bank service charge is $90. what was the adjusted book balance?