Exhibit 10-6 Aggregate supply curve
In Exhibit 10-6, when the economy moves from a GDP of $1,000 billion to a GDP of $1,100 billion,
A. higher wages will lower the cost of producing goods.
B. real GDP and employment both increase, but only under conditions of constant prices.
C. real GDP increases and employment decreases, but only under conditions of price level increases.
D. real GDP and employment both increase, but only under conditions of price level increases.
Answer: D
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Implicit costs involve an exchange of money
Indicate whether the statement is true or false
What is one result of the Medicare subsidy?
A) The health care industry is more efficient than it otherwise would be. B) Patients may elect to have some treatments that are of low value to them but that are costly to provide. C) The elderly population in the United States receives a lower quality of medical care than what is provided for the elderly population in other countries. D) The number of physicians in the United States has declined.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the amount of labor used increases from three to four units, the marginal product of the second unit of capital
A. decreases by 49 units. B. increases by 49 units. C. decreases by 14 units. D. increases by 8 units. E. none of the above
The invisible hand theorem comes from:
A. sociology. B. political science. C. macroeconomics. D. microeconomics.