If the government should decide to legalize marijuana, all other things remaining the same, we should expect to see
A. a decrease in the price of marijuana.
B. an increase in the price of marijuana.
C. an increase in the use of imported versus domestic marijuana.
D. a decrease in the demand for marijuana.
Answer: A
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
Macroeconomics differs from microeconomics in that
A) macroeconomics studies the decisions of individuals. B) microeconomics looks at the economy as a whole. C) macroeconomics studies the behavior of government while microeconomics looks at private corporations. D) macroeconomics focuses on the national economy and the global economy.
The textbook tells us that in the short run, people typically ___________ price changes when compared to the long run
a. are very responsive to b. are more sensitive to c. are less sensitive to d. do not respond to e. are unaware of
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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C