The ability to produce an item at a lower opportunity cost compared with other producers is known as

If the MPC = 0.8, an increase in investment spending from $35 billion to $38 billion will increase real GDP by

A) $3 billion. B) $3.75 billion. C) $15 billion. D) $24 billion.

Which of the following scenarios would support the theory of public choice?

A. A college president eliminates wasteful departments and programs even though this will shorten her tenure and her political future. B. The local police chief fails to give the mayor a speeding ticket because the mayor might fire him. C. The president of Colombia goes after drug traffickers despite death threats and the offer of bribes that could make him a rich man. D. The governor of the state vetoes a highway bill even though the highway would enhance the value of property he or she owns.