If the price of gasoline were $5, many people would stop buying gasoline while others would continue to do so. This would indicate
A) those who are buying gasoline value it at least $5 per gallon.
B) those who are not buying gasoline value it more than $5 per gallon.
C) only those who are extremely wealthy are buying gasoline.
D) the price of gasoline needs to be regulated by the Federal Government.
A
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Use the following consumption schedule to answer the next question. 
The break-even level of income would be at income level
A. 0. B. 1. C. 2. D. 3.
Suppose Lorna will buy more sweaters if the price of sweaters rises. She is violating the
a. law of supply b. law of increasing costs c. law of large numbers d. law of diminishing costs e. law of demand
In the Keynesian model, an increase in saving serves to decrease consumption spending, causing a multiple contraction in national income
Indicate whether the statement is true or false
Use the following production possibilities frontiers to answer the next question.
Curve (a) is the initial frontier for the economy. If the economy's production possibilities then shift to curve (b), then point
A. N would still indicate a case of full production and full employment of resources. B. L would indicate some unemployment or underemployment of resources. C. N would indicate some unemployment or underemployment of resources. D. L would still indicate a case of full production and full employment of resources.