Classical economists think that lump-sum tax changes
A) should be used to smooth business cycles.
B) have a powerful effect on the economy.
C) affect aggregate demand after a lag.
D) have no effect because of Ricardian equivalence.
D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If individuals make intertemporal choices using "hyperbolic discounting", this may create inefficient choices because individuals will: a. not take account of their time preferences
b. make choices that are inconsistent over time. c. have a preference for only consuming in the future. d. confuse nominal and real interest rates.
A particular music store, Discs-R-Us, sells over 3,000 different compact disks. Pat's opportunity cost of choosing to purchase a compact disk by Pearl Jam
a. is zero if he does not like any other compact disk b. is how much he would have enjoyed his second-favorite compact disk c. depends on the compact disks not sold by the store d. is negative e. is how much he would have enjoyed a compact disk by Vanilla Ice
One concern of feminist empiricists is the way population control can restrict the reproductive rights and health of women. The world's most glaring example of this is the
a. opposition to same-sex marriage. b. widespread lack of contraceptives. c. "one child" policy. d. illegalization of late-term abortion.