Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. An aggregate demand shift from AD2 to AD0 can be caused by
A. a decrease in taxes.
B. a decrease in the price level.
C. a decrease in money supply.
D. an increase in the price level.
Answer: A
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If a good has a negative income elasticity of demand, this indicates that the good is
A) normal. B) a substitute with another good. C) inferior. D) a complement with another good.
In the case of positive externalities, social benefits are __________ internal benefits.
A. less than B. equal to C. sometimes greater and sometimes less than D. greater than
Using Figure 1.7, we know the production of 10 units of soda and 1 unit of pizza is 
A. possible, but only if all resources were fully employed. B. impossible because we have the resources but do not have the technology. C. impossible because we have the technology but do not have the resources. D. possible, but there would be unemployed resources.
Explain why industrial policies are controversial
What will be an ideal response?