The quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level is shown on the
a) aggregate-goods curve.
b) market-demand curve.
c) aggregate-demand curve.
d) aggregate-supply curve.
Answer: c) aggregate-demand curve.
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A situation in which government intervention in the economy worsens the economic outcome is termed
a. neoclassical failure. b. socialism. c. government failure. d. dependency revolution.
Which of the following statements about the distribution of physicians among specialties is true in the United States?
a. The majority of physicians specialize in general/family practice. b. There are twice as many generalists as there are specialists. c. There are twice as many specialists as there are generalists. d. The specialty distribution in the U.S. is similar to that of the rest of the world. e. None of the above.
Assuming food and beverages make up about 15 percent of total expenditures and food and beverage prices rise by 10 percent while the other components of the price index remain constant, approximately by how much will the price index rise?
A. 25 percent B. 15 percent C. 1.5 percent D. 1 percent
Consumer surplus
A. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price. B. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept. C. is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. D. rises as equilibrium price rises.