If the relative price of pizza in terms of movies is 3, this means that
A) the opportunity cost of a pizza is 3 movies.
B) 3 pizzas can be traded for 9 movies.
C) in terms of the dollars that must be spent to buy the product, pizza is more expensive than movies.
D) All of the above answers are correct.
D
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay. What is the value of consumer surplus by her customers?
A) $39 B) $28 C) $11 D) $0
The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker eventually: a. increases at a constant rate
b. increases at a decreasing rate. c. increases at an increasing rate. d. decreases. e. remains constant.
Which of the following is not correct?
a. Welfare is a broad term that includes a variety of government programs designed to help poor people. b. Since the early 1970s, welfare benefits adjusted for inflation have increased, as has the percentage of children living with only one parent. c. Critics of welfare programs argue that they can create incentives for unmarried women to have children. d. Supporters argue that welfare doesn't cause the decline of two-parent families.