Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.25 per can, then what will be the market demand for soda each week? 
A. 90 cans
B. 60 cans
C. 70 cans
D. 130 cans
Answer: D
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
In the early 1980s, many people found themselves unable to purchase new homes because of:
a. rising prices and interest rates. b. rising prices and falling interest rates. c. new government restrictions on mortgages for first-time buyers. d. increases in income tax rates.
What is the benefit of understanding the income and the substitution effects?
A) The income effect might run in the opposite direction of the substitution effect. B) The income effect always runs in the opposite direction of the substitution effect. C) The income and substitution effects just offset each other, which explains a lot. D) The income and substitution effects are proportional to each other.
When collecting data to conduct research, if the sample used includes only observations which have remained in the sample over time, making that sample unrepresentative of the broader population, ________ occurs.
A. regression discontinuity B. difference-in-differences C. intention to treat D. survivor bias