Suppose an increase in government spending stimulates real GDP without affecting the price level. What is the relevant range of the aggregate supply curve in this case?
A. the classical range
B. the intermediate range
C. the Keynesian range
D. the monetarist range
Answer: C
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Derivatives are securities that derive their values from the values of underlying investments
a. True b. False Indicate whether the statement is true or false
The demand by sterile couples for babies to adopt has grown rapidly, while the supply has dwindled because of improved contraception, liberal abortion laws, and an increase in the probability that unwed mothers will keep their children. It violates the law to sell human beings at any age, but for every twenty legal adoptions there seemingly is one baby sale at a price up to $50,000 . The generic
term economists apply to the market produced by this type of shortage is a. "black market." b. "white slave market." c. "the adoption market." d. "baby market."
Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. Chris will:
A. accept this gamble if he is either risk neutral or risk-averse. B. accept this gamble if he is risk-averse, but not if he is risk-neutral. C. not accept this gamble if he is risk-neutral. D. accept this gamble if he is risk neutral, but not if he is risk-averse.
Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. 
Figure 8.3
Refer to Figure 8.3. The marginal cost of the eleventh basketball is
A. less than $1. B. $1. C. $2. D. greater than $2.