Shirley can choose between peanut butter pretzels and caramel coated popcorn for her evening snack. According to economists, her _____ cost of consuming caramel coated popcorn would be the forgone peanut butter pretzels
a. internal
b. opportunity
c. average
d. transaction
e. social
b
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The aggregate output demanded for a given price level occurs at the point where: a. an economy reaches the full employment of labor. b. aggregate expenditure equals real GDP
c. actual aggregate expenditures exceeds real GDP. d. inventories of goods and services are increasing. e. inventories of goods and services are decreasing.
Taxes create deadweight losses because they
a. reduce profits of firms. b. distort incentives. c. cause prices to rise. d. create revenue for the government.
The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called
a. liberalism. b. libertarianism. c. mobilism. d. utilitarianism.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.