An indifference curve is a line showing
A. combinations of goods that can be produced if all resources are fully employed.
B. all combinations of two commodities that are equally desirable to the consumer.
C. all combinations of goods over which the consumer has no choice.
D. how decisions are made in a nonmarket economy.
Answer: B
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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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The use of money adds to wealth because it tends to increase people's
A) options. B) risks. C) costs. D) expenditures. E) elasticity of demand.
An important distinction between the labor market and the market for commodities is:
a. that contracts are arrived at more easily in the former. b. the individual attributes of the buyer and seller hold far more importance in the former case. c. that it is impossible to prevent breach of contract in the labor market. d. that the market for commodities is a matching market while the former is not.
Figure (a) represents the domestic demand and supply of televisions. However, if free trade is allowed and the current world price of televisions is P1 as shown in Figure (b) then the quantity of televisions imported would be
a. Q3 minus Q1.
b. Q4 minus Q1.
c. Q2 minus Q1.
d. Q4 minus Q3.