Figure 33-4
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Figure 33-4 shows four movements of the inflation rate and the unemployment rate. Which panel shows the movement associated with a “supply shock” like those of the 1970s?

Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?

a. The response of buyers to a change in the price of bananas is strong, and the response of sellers to a change in the price of bananas is weak. b. The response of sellers to a change in the price of bananas is strong, and the response of buyers to a change in the price of bananas is weak. c. The response of buyers and sellers to a change in the price of bananas is strong. d. The response of buyers and sellers to a change in the price of bananas is weak.

Which of the following is issued to an investor to provide protection from having the invention copied or stolen for 20 years?

A. a license B. a certificate of convenience C. a patent D. a natural monopoly