If a nation's production possibilities curve shifts inward, we should expect its long-run aggregate supply curve to
A. have a rightward shift.
B. have a leftward shift.
C. have an upward movement along the curve.
D. have a downward movement along the curve.
Answer: B
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
About ________ of pharmaceutical patents are issued to U.S. firms
A) 10 percent B) one-half C) two-thirds D) 90 percent
Consider the production function for bottled water. All of the following would be considered variable inputs except:
A) the plastic bottles. B) the water the bottles are filled with. C) the machine used to fill each bottle. D) the electricity used to power the machine used to fill the bottles.
Education confers positive externalities because
a. some education is done outside the market (i.e., in public schools) b. curricula are regulated by the government, even in private schools c. an educated person consuming education gains many benefits he or she did not expect when the process started d. an educated person who has consumed education usually behaves in a way that benefits others e. education gives benefits to individuals in excess of the costs they pay to get it