The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B
B. recessionary; C
C. recessionary; A
D. expansionary; A
Answer: C
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If Asian economies suffer a serious economic slump, U.S. net exports will
A. increase and AD will shift outward. B. increase and AD will shift inward. C. decrease and AD will shift inward. D. decrease and AD will shift outward.
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the total cost of producing 70 units?
A) $1,700 B) $1,900 C) $2,100 D) $2,300
Albert, Betty, Christine, and David are all very good students. When they hold their study sessions, they often discuss very difficult concepts in great detail. Christine's roommate, Elizabeth, who takes completely different classes, still learns from the discussions of the others. This is the case of a(n) _______________ which _______________ a _______________
a. public good; benefits; third party b. externality; imposes a cost on; free rider c. market failure; results from; third party d. free rider; benefits from; third party e. externality; benefits; third party
Firms that produce ________ products must be ________ competitive
A) differentiated; imperfectly B) differentiated; perfectly C) standardized; imperfectly D) standardized; perfectly E) exported; imperfectly