A notable macroeconomic effect of the bursting U.S. housing bubble in 2007 was a
A. modest reduction in the growth rate of aggregate consumption spending.
B. marked expansion in the construction sector of the economy.
C. sharp reduction in Real GDP that increased the unemployment rate by two percentage points.
D. all of the options are correct.
Answer: A
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An airline decides to sell 5 seats that would otherwise remain unoccupied on a flight from California to Chicago for $300 each, instead of the regular price per ticket of $450 each. We can probably conclude that: a. The marginal cost of providing each added seat on the flight was less than $300
b. The average cost of providing each seat on the flight was less than $300. c. The marginal cost of providing each seat on the flight was less than $450 but more than $300. d. The average cost of providing each seat on the flight was $450.
The accelerator principle relates the level of investment to changes in the level of national income
Indicate whether the statement is true or false
In Figure 23.1, for a good with no externality, which area represents the net benefit to society of this market? 
A. BP*C B. ABC C. 0ACQ* D. 0P*CQ*
Economists who adhere to the laissez-faire antitrust perspective:
A. view competition as a long-run dynamic process in which firms battle for dominance of markets but rarely can sustain such dominance once it is achieved. B. believe the antitrust laws are as important today as they were when they were passed in the early 1900s. C. say that an industry's structure, which is based on economies of scale, usually predicts the behavior of the industry firms. D. contend that large, dominant firms should be broken into smaller competitive firms and then government should stand back and let competition prevail.