Suppose the figure below shows Luke's demand curve for check-ups along with the supply curve for check-ups.  If Luke had to pay the entire marginal cost of each check-up, then he would choose to have ­______ check-ups a year.

If the opportunity cost is 2X = 1Y for country A and 1/3X = 1Y for country B, then a possible terms of trade is:

A) 1X=1Y. B) 1X=4Y. C) 1X=5Y. D) 3X=1Y.

Credibility is important to successful anti-inflationary policy in ________

A) new Keynesian theory B) traditional Keynesian theory C) real business cycle theory D) post classical theory