Refer to Figure 13-1. Ceteris paribus, a decrease in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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During the colonial period the cost of building a ship in New England was typically _________ the cost of building the same ship in England
a. greater than b. less than c. about equal to d. not comparable to
Melanie decided to sleep in today rather than attend her 9 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for. b. irrational, because oversleeping is not in Melanie's self-interest. c. rational if Melanie has not missed any other classes. d. rational if Melanie values sleep more highly than the benefit she expects to receive from attending the class.