Use the following graph, which shows an aggregate demand curve, to answer the next question. 
If the price level increases from 150 to 250, the real output demanded will ________.
A. increase by $200 billion
B. decrease by $200 billion
C. decrease by $600 billion
D. increase by $800 billion
Answer: B
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In monopolistic competition, the end result of entry and exit is that firms end up with a price that lies on the downward-sloping portion of the average cost (AC) curve, not at the very bottom of the AC curve. This means that monopolistic competition will:
a. be productively efficient. b. display allocative efficiency, but only in the short run. c. not be productively efficient. d. display allocative efficiency, but only in the long run.
An individual who pays for a vehicle has incurred a
A) social cost. B) private cost. C) negative externality. D) positive externality.
List and explain the four key assumptions in the theory of public choice
What will be an ideal response?
What is the principle distinction between explicit costs and implicit? costs?
A. There is no real difference between explicit and implicit costs. B. Implicit costs are usually larger than explicit costs. C. Implicit costs must be paid immediately, but explicit costs need to be paid only in the long run. D. Explicit costs are direct, out-of-pocket payments, while implicit costs are all foregone opportunity costs