The utility derived from consuming a good depends on:
a. the price of the good.
b. the market demand for the good.
c. your tastes and preferences.
d. your income level.
c
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would therefore
A) generate tremendous economic growth. B) overcome scarcity. C) lead to a greater coordination among peoples' production and consumption plans. D) allow everybody the opportunity to seek their comparative advantage. E) accomplish none of the above.
Everything else held constant, when the inflation rate is expected to rise, interest rates will ________; this result has been termed the ________
A) fall; Keynes effect B) fall; Fisher effect C) rise; Keynes effect D) rise; Fisher effect
Most people buy insurance because they
a. are risk lovers b. enjoy the gamble c. are risk neutral d. want to avoid gambles