Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
The manufacturer of the over-the-counter pain reliever would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in
B. decrease
C. increase
D. experience an uncertain change in
Answer: B
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Which of the following is an argument against balancing the federal budget?
A. Doing so may prevent the government from pulling the economy out of recession. B. An increase in government spending and taxes by the same amount does not affect income. C. The economy will self-adjust so deficit spending is not necessary. D. None of the choices are correct.
The net benefits that a nation receives from trade are called its gains from trade.
a. true b. false
Refer to the data provided in Table 10.1 below to answer the following question(s).
Table 10.1 
Refer to Table 10.1. The marginal revenue product of the fifth worker is
A. $15. B. $75. C. $90. D. $550.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher