4. Refer to the accompanying figure. What is total consumer surplus at the market equilibrium?
(A) $6 per day
(B) $80 per day
(C) $160 per day
(D) $240 per day

5. The most important challenge facing a firm in a perfectly competitive market is deciding: (A) whether to maximize its profits. (B) how much to produce. (C) what price to charge. (D) whether to advertise.

6. Which of the following is NOT an example of an explicit cost? (A) The overtime wages paid to workers. (B) The income the owner could have earned in his or her next best employment opportunity. (C) The salaries paid to the managers who help run the business. (D) The rent the owner pays each month to lease office space.

7. Which of the following firms is most likely to be a pure monopolist? (A) A clothing retailer with the best location in a mall (B) A grocery store in a large city (C) The most popular hot dog vendor on a city street corner (D) The only gas station in a small, isolated town 

8. If living standards in a country, as measured by output per person, decrease, then total output must have: (A) increased more rapidly than population increased. (B) increased at the same rate that population increased. (C) increased more slowly than population increased. (D) decreased more slowly than population decreased.

9. If a pizza maker pays $1 for tomatoes, $1 for cheese, $2 for sausage, and sells the pizza made with these ingredients for $7, then each pizza sold contributes how much to GDP? (A) $3 (B) $4 (C) $7 (D) $11

10. On January 1, 2015, Anna invested $5,000 at 5% interest for one year. The CPI on January 1, 2015 stood at 2.37. On January 1, 2016, the CPI was 2.40. The real rate of interest earned by Anna was ______ percent. (A) –5 (B) 3.7 (C) 5 (D) 9

11. Average labor productivity is determined by: (A) consumption, investment, government spending, and net exports. (B) the number employed, unemployed, and the labor force participation rate. (C) the quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment. (D) the real interest rate, the nominal interest rate, and the rate of inflation.

12. Which of the following is an example of frictional unemployment? (A) Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. (B) Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. (C) George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. (D) Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't fit his skills, but now has a job that requires the expertise he gained in college. 

13. Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and there is no international trade, private saving equals: (A) C + I + G – T. (B) Y – T – C. (C) Y –T – G. (D) Y – C – I.

14. If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are ______ and the money supply is _____. (A) 200； 600 (B) 400； 800 (C) 600； 1,000 (D) 800； 1,200

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