Public goods face the
A) principle of rival consumption.
B) free-rider problem.
C) law of overproduction.
D) exclusion principle.
Answer: B
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M2 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Large denomination time deposits. d. Money market deposit accounts. e. Money market mutual accounts.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Doug is currently not employed. He places a value of $16 an hour on his time in nonmarket activities. If Doug is offered a job paying $12 an hour
A. he should supply a positive number of hours in the labor market and to nonmarket activities. B. he is indifferent between supplying hours to the labor market and using his time in nonmarket activities. C. he should supply 0 hours in the labor market. D. he should supply a positive number of hours in the labor market and allocate no time to nonmarket activities.
When total product is maximized, marginal product
A. and average product are zero. B. and average product are positive. C. is positive, but average product is zero. D. is zero, but average product is positive.