Which of the following examples best shows scarcity?
a. Clara buys a dress for a bargain price.
b. Juan decides to save 20 percent of his limited income.
c. Sosuke finds a quarter on the sidewalk.
d. Lucia runs out of dishwashing liquid right before a big party.
b. Juan decides to save 20 percent of his limited income.
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Researchers estimate QALYs in a number of different ways. One popular approach is called:
a. the probability approach. b. the standard measure of well-being. c. the utility of life approach. d. the standard gamble. e. the QoL approach.
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. In this industry, in the long run
A. demand for the product will decrease so that profits are decreased. B. firms will continue to earn economic profits. C. firms will enter until all firms earn a normal profit. D. the government will impose price controls to eliminate any economic profits.
Automatic stabilizers are provisions in the law which create automatic ________ in government spending or ________ in taxes when real output declines.
A. decreases; decreases B. increases; increases C. increases; decreases D. no change; no change
Barriers to entering an industry ________.
A. encourage allocative efficiency B. are characteristic of a pure monopoly C. encourage productive efficiency D. apply only to pure monopolies