Suppose the South had won the Civil War, and trade no longer took place between Northern and Southern states. Explain whether the sum of the North and South GDPs would have been higher or lower than with the current United States
North and South added together would have a lower GDP than the United States. Intrastate trade adds to GDP by allowing specialization. Prohibiting trade among the states would force Northern states to grow their own agricultural products and Southern states to produce their own manufactured goods.
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When economy-wide business fluctuations are negative, they are referred to as
A) contractions/recessions. B) booms. C) expansions. D) peaks.
Which of the following variables is not needed to determine the break-even quantity?
a. Marginal costs b. Fixed Costs c. Selling Price d. Average Costs
A tax of $1 on sellers shifts the supply curve upward by exactly $1
a. True b. False Indicate whether the statement is true or false
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
A likely reason for the difference in the slopes of the demand curves is that:
A. one market is in equilibrium and the other is not. B. the over-the-counter pain reliever has many substitutes, but the new drug does not. C. one drug is heavily regulated by the Food and Drug Administration and the other is not. D. one drug is new on the market, but the other has been available for a long time.