At the point where the demand and supply curves for a product intersect:
A. the selling price and the buying price need not be equal.
B. the market may, or may not, be in equilibrium.
C. the quantity that consumers want to purchase and the amount producers choose to sell are the same.
D. either a shortage or a surplus of the product might exist, depending on the degree of competition.
Answer: C
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If the central bank increases the money supply at the same time as government spending increases, then:
a. interest rates must increase. b. interest rates must decrease. c. income must increase. d. income must decrease.
A pure private good is
A. nonrival in consumption and subject to exclusion. B. rival in consumption and subject to exclusion. C. rival in consumption and not subject to exclusion. D. all of these answer options are correct.
Referring to Table 4.2, Box Q should be filled with 
A. $12.50. B. $7.50. C. $2. D. $00.
The observed correlation between baldness and heart disease demonstrates that:
A) being bald causes a man to have heart disease. B) being bald actually makes heart disease less likely. C) bald men are generally unreliable. D) there is probably some other factor that causes both baldness and heart disease.