23. An increase in the expected inflation rate shifts the ______
(A) longrun Phillips curve upward.
(B) longrun Phillips curve downward.
(C) shortrun Phillips curve downward.
(D) shortrun Phillips curve upward.

24. Suppose that the U.S. interest rate is 5 percent and the Japanese interest rate is 1 percent. The effect of this difference in the foreign exchange market is that ______ (A) investors expect the yen to depreciate against the dollar. (B) investors expect the yen to appreciate against the dollar. (C) financial capital stops moving. (D) a Japanese investor is guaranteed to make an additional 4 percent in yen terms by investing in the United States.

25. If net exports, X -M = $0, and the government sector has a deficit of $250 billion, then the private sector ______ (A) has a deficit that equals $500 billion. (B) has a deficit that equals $250 billion. (C) has a surplus that equals $250 billion. (D) has a surplus that equals $500 billion.

1. Which of the following is true about the corresponding marginal revenue curve when the demand is downward-sloping? (A) It is downward-sloping. (B) It is the demand curve under \( 1^{\text{st}} \) degree price discrimination. (C) It is steeper than the demand if there is no price discrimination. (D) All of the above.

2. Which of the following is true about economic rent? (A) It is a wedge in quantities. (B) It comes from some exclusivity. (C) It is part of the deadweight loss. (D) It prevents black market deals.

3. Which of the following is not true about perfect versus monopolistic competition? (A) Individual firm produces more output in perfect than in monopolistic competition. (B) Individual firm charges a lower price in perfect than in monopolistic competition. (C) Individual firm breaks even in long-run equilibrium in both of them. (D) The market supply equals the horizontal summation of each individual firm's supply in both of them.

4. Which of the following is not a characteristic of a monopoly? (A) It is difficult to find substitutes for its product. (B) It is the only supplier in the market. (C) It is a price-taker. (D) It is almost impossible for others to enter.

5. Which of the following statement best describes the concept of consumer surplus? (A) The camera costs exactly my budget for it. (B) It is always a happy surprise to have extra discounts when buying something. (C) The seller refuses to accept a lower price. (D) Consumers are willing to pay more for better quality.

6. If John's consumption for coffee decreases by 15% as the price of coffee increases by 30%, we call John has a(n) _______ demand for coffee. (A) elastic (B) inferior (C) inelastic (D) unit-elastic

7. Which of the following is not true about "long run" in economics? (A) It has to be at least over one year. (B) All inputs are variable inputs. (C) It differs case by case. (D) Every input changes with level of outputs.

8. Given the information below, what is the cost of traveling abroad for the summer? (A) $3,000 (B) $4,600 (C) $5,000 (D) $5,800

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