Refer to the above figure. An increase in aggregate demand beyond real Gross Domestic Product (GDP) level Y1 would result in
A. a lower price level and an increases in real GDP.
B. higher real GDP but not a higher price level.
C. a lower price level but no change in real GDP.
D. a higher price level but no change in real GDP.
Answer: D
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What will be an ideal response?
One thousand tickets are sold at $1 each for a color television valued at $350. What is the expected value of the gain if a person purchases one ticket?
A. -$0.001 B. -$349 C. -$0.65 D. -$0.80
Which of the following groups is engaging in rent seeking?
a. Karst Salvage, a non-profit that accepts donations to educate people about the importance of caves b. Safer Rides, a group that lobbies elected officials to get safety features added to cars c. Daring Drones, a group that makes donations to officials hoping to get permits to fly in restricted areas d. Long-time Logging, which donates money to campaigns of politicians who promise to help preserve forests
Some economists are suggesting that we should use the insights of behavioral economics to:
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