The market economy is regarded as "efficient" in that
What will be an ideal response?
it directs resources toward products that the society wants most.
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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
When we look at a production possibilities curve, the opportunity cost can be understood as
A) The point of maximum production of one good B) The amount of the other good that must be given up for one more unit of production C) The total cost of producing the good D) The price people will pay for the additional amount produced
If the supply curve shifts to the right, how does this affect the market for product A?
a) A higher equilibrium price and a higher equilibrium quantity. b) A lower equilibrium price and a lower equilibrium quantity. c) A higher equilibrium price and a lower equilibrium quantity. d) A lower equilibrium price and a higher equilibrium quantity.
In Figure 45.1, the (producer) surplus that employees get at the equilibrium wage-labor combination is 
Figure 45.1
A. ABC. B. BW*C. C. W*AC. D. OACL*.