What does GDP measure to avoid double-counting?
a. final goods and services
b. intermediate goods and services
c. net exports
d. all sales of goods and services
a. final goods and services
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If basic literacy promotes a consistency of individual and social goals
a. social returns exceed private returns b. private returns exceed social returns c. the individual's income will rise d. people should pay the full cost of their education e. costs of education will be low
The economic profits of many monopoly firms are reduced as a result of
a. rent-seeking activity b. government regulation c. demand inducement d. rent-seeking activity and price floors e. both a. and b.
Which of the following statements is correct?
a. Taxes are more difficult to administer than regulations. b. Taxes provide incentives for firms to adopt new methods to reduce negative externalities. c. Command-and-control policies provide incentives for private decisionmakers to solve their problems on their own. d. Corrective taxes distort incentives.