The "opportunity cost" of an action is
What will be an ideal response?
the value of the next-best opportunity that must be sacrificed in order to take that action.
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A firm that operates in Stage III of the short-run production function
A) has too much fixed capacity relative to its variable inputs. B) has too little fixed capacity relative to its variable inputs. C) has greatly overestimated the demand for its output. D) should try to increase the amount of variable input used.
The term "near monies" refers to which of the following? a. Savings and small time deposits, which (unlike currency and checkable deposits) are not immediately available as money in a transaction. b. Mexican pesos and Canadian dollars – the money used by our nearest neighbors
c. Counterfeit money that closely approximates the appearance of real money. d. None of the answers above are correct.
If people buy less chewing gum at every price when their incomes fall, then
a. chewing gum is a normal good b. the demand for chewing gum is downward sloping c. demand for chewing gum has increased d. the price of chewing gum has increased e. population has decreased
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary