Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

Refer to the scenario above. The opportunity cost of producing one pound of apples in Beta is:

A) 1/2 pounds of oranges. B) 15 pounds of oranges. C) 10 pounds of oranges. D) 2 pounds of oranges.

The main factor that explains the difference between accounting cost and economic cost is

A) opportunity cost. B) fixed cost. C) variable cost. D) All of the above help to explain the difference.