Refer to Figure 23-1. According to the figure above, at what point is aggregate expenditure less than GDP?

The less the bend (or arc), or more linear the utility function is, the ________ risk averse the person is.

Fill in the blank(s) with the appropriate word(s).

When a person throws a cigarette out of a car window and starts a brush fire, this is

A) an example of an external benefit. B) an example of an external cost. C) an example of a public good. D) an example of market power.