Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point
A) within its PPF. B) on its PPF. C) beyond its PPF. D) None of the above is correct because increasing the production of one good without decreasing the production of another good is impossible.
The main fiscal policy challenge for the future in the United States is rising expenditure on
A) transfer programs. B) education. C) national defense. D) the net interest on the federal debt.
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What are the implicit costs of his business?
A) $8,000 B) $18,000 C) $24,000 D) $32,000
If a person must pay 20% of a covered health-care expense, this is called their
A. deductible. B. maximum out-of-pocket. C. co-payment. D. lifetime maximum.