If a subsidy (going to producers) is created for a good, this would
A. move its supply curve to the right.
B. cause a movement along the supply curve to a (lower price, lower quantity) point.
C. cause a movement along the supply curve to a (higher price, higher quantity) point.
D. move its supply curve to the left.
Answer: A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
U.S. dollar bills
A) are backed by gold. B) are backed by silver. C) are backed by platinum. D) are backed by uranium. E) are not backed by any precious metal.
When the nominal exchange rate in terms of dollars per yen rises
A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.
Direct controls are considered inefficient because all firms are forced to pay the same costs.
Answer the following statement true (T) or false (F)