Chapter 1 Reviewer

1. A - usually do so at the expense of equity.

2. C - room and board (that costs her about the same as she was paying before entering college)

3. C - Any price above zero that will entice standby passengers to take the flight.

4. C - fewer pedestrians were killed in car accidents.

5. B - both persons usually gain from the exchange.

6.B - all producers and consumers.

7. D - decide what and how much should be produced

8. A - relentless increases in the productivity of labor over the years.

9. C - rapid increases in the quantity of money in the economy.

10. D - increase in the long-run.