Everything else held constant, if aggregate output is to the right of the IS curve, then there is an excess ________ of goods which will cause aggregate output to ________
A) supply; fall
B) supply; rise
C) demand; fall
D) demand; rise
A
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Anthony and Kelly decide to watch a movie on Netflix using a promotion code so they do not need to pay for that movie. We know that
A. neither bears an opportunity cost since neither needs to pay for the movie. B. both bear an opportunity cost that depends on what each person is giving up to watch the movie. C. both bear the same opportunity cost because they are seeing the same thing. D. both bear the same opportunity cost because the tickets have the same face value.
A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called
A. a public good. B. a merit good. C. the free-rider problem. D. an externality.
An economy that is an active participant in international trade is
A. a closed economy. B. a protectionist economy. C. an open economy. D. an egalitarian economy.
You decide to buy your friend lunch after she helped you study for your exam. This is an example of the economic concept of:
A. marginal utility. B. reciprocity. C. altruism. D. a Veblen good.