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
Answer: D
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Which of the following is an example of basic research?
a. Conducting animal tests to determine if a product contains irritants b. Soft drink bottlers testing consumer reactions to their advertisements c. A statistician calculating the odds of winning a promotional sweepstakes that a company is running d. A catalog sales company timing its operators to see how many calls each is handling per day e. A chemist building a mathematical model of the atmosphere of Jupiter
Columbia produces coffee with less labor and land than any other country; it therefore necessarily has a. an absolute advantage in coffee production
b. a comparative advantage in coffee production. c. both a comparative and absolute advantage in coffee production. d. an absolute advantage and comparative disadvantage in coffee production.
The employment effect of a minimum wage increase is greater the
A. more elastic the demand for labor. B. less elastic the demand for labor. C. more the wage ceiling shifts the supply curve. D. more the wage floor shifts the demand curve.
Positive statements can be checked, evaluated, or edited based on:
a. available evidence. b. personal choice. c. budget constraints. d. opportunity costs.