Which of the following statements is TRUE about the difference between a public and private good?
A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared.
B) The government produces private goods while corporations produce public goods.
C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others.
D) Resources are used to produce private goods but are not used to produce public goods.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Gary has won a laptop in an online auction. This implies that Gary's willingness to pay for the laptop was ________
A) higher than its market price B) lower than its market price C) higher than that of the other bidders D) lower than that of at least one bidder
How can a partnership raise funds needed for firm expansion?
What will be an ideal response?
Because the aggregate supply curve rises more steeply as the economy approaches full employment,
A. The recessionary GDP gap becomes larger. B. Aggregate demand shifts to the left. C. It becomes easier to reach full employment. D. Inflation tends to accelerate.