If the economy is in long-run equilibrium:
A. current inflation should be less than expected inflation.
B. current inflation should equal expected inflation.
C. inflation should be accelerating.
D. current output should be greater than potential output.
Answer: B
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Refer to Table 4-7. Suppose that the quantity of labor demanded decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.50; Q = 550,000 B) W = $9.50; Q = 590,000 C) W = $12.50; Q = 630,000 D) W = $9.50; Q = 570,000
To answer the question, refer to the following table showing a demand schedule: 
As quantity demanded rises from 1,400 to 1,800, what is marginal revenue?
A. -$400 B. $50 C. $25 D. -$50 E. -$75
In the circular flow diagram, businesses
A) Buy resources and sell products B) Sell resources and buy products C) Sell resources and sell products D) Buy resources and buy products
If the market price of a product is $14 and all sellers are price takers, then which of the following is correct?
A) Each seller's total revenue line is graphed as an upward-sloping straight line. B) The demand curve for each seller's product is a downward-sloping straight line. C) Each seller can earn more total revenue by raising the price he or she charges above $14. D) The demand curve for each seller's product is a downward-sloping but not necessarily a straight line. E) Each seller's total revenue is graphed as an upside-down U-shaped curve.