Refer to Figure 23-1. According to the figure above, at what point is aggregate expenditure less than GDP?
A) J B) K C) L D) none of the above
C
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A pecuniary externality _____
a. affects the prices facing the third parties on which the externality falls b. affects the products bought by third parties c. affects the production functions of third parties d. affects the production functions of producers of the externalities
Two games that differ only in the timing of moves—one simultaneous, the other sequential move—can sometimes have completely different subgame-perfect equilibria. Why?
a. The second mover to choose non-credible threats. b. The first mover can choose an action that it would deviate from if its action were secret. c. Subgame-perfect equilibrium cannot be applied to simultaneous games. d. All of the above.
Points outside the production possibilities curve represent combinations of products that are:
A. attainable only if the economy's resources are fully employed. B. attainable only if the economy's resources are not fully employed. C. attainable if the economy's resources are either fully employed or not fully employed. D. unattainable.
Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. The slope of the isocost line is
A. -2. B. -1/2. C. 1/2. D. 2.