At any quantity of output above the intersection of the marginal revenue and marginal cost curves:
A. ATC equal to AVC.
B. MR is higher than MC.
C. profits are being maximized.
D. MR is lower than MC.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Explain how the volunteer's dilemma is a special case of the public goods problem in which the possibility exists that no one will end up providing the public good
What will be an ideal response?
What to do about inflationary and employment problems in the economy? Conservative economists advocate
a. strong fiscal policy, particularly taxing luxuries b. strong monetary policy, particularly taxing luxuries c. no interference in the private sector d. that to pursue aggressive and consistent policy, the Federal Reserve System should become a department with the executive branch of government e. relying on trends in real business cycles to implement expansionary fiscal policy
If trade between two countries is voluntary, one can expect that
a. one country's gain is necessarily the other's loss. b. one country will exploit the other one. c. neither country really gains from trade. d. the larger country will always gain at the expense of the smaller. e. both countries expect to gain something.