The diagram below shows the general equilibrium model for a small economy. For this economy, the economically efficient allocation of resources occurs at point 
A. B.
B. C.
C. D.
D. A.
Answer: C
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John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?
A) attending a movie B) studying for an economics exam C) answering his e-mail D) attending a movie, studying for an economics exam, and answering his e-mail E) going to the concert because that is what John choose to do
In the ________ zone, movement in AD to the right will increase both the output level and the price level, while a movement in AD to the left would decrease both the output level and the price level.
a. Keynesian b. neoclassical c. intermediate d. equilibrium
the demand for ethanol is affected by the following factors (pick the best of the choices):
a) the price of corn (an input to ethanol production) b) the number of ethanol plants that produce ethanol c) a change in the technology of ethanol production d) a new regulation mandating increased use of ethanol mixed gasoline e) all of the above
Governments can increase the consumption of a product that creates positive externalities by
A) subsidizing the production of the product so that the supply is increased and market price is reduced. B) taxing the production and consumption of the product. C) convincing everyone to consume the product. D) assigning property rights to the producers of the product.