Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:

According to the principle of diminishing returns, if all factors of production but one are held constant and if that one factor is doubled, then eventually output will most likely

A) double too. B) more than double. C) less than double. D) remain unchanged.

Public goods represent ________ because by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably.

A. a market failure B. efficient production C. a negative externality D. a positive externality