Janie decides to give up her $200,000 a year job as the producer of the most popular television news show in Seattle in order to cultivate and sell orchids, which she anticipates will yield her an annual income of $30,000 . To an economist,
a. she may be mother earth, but she's not making a rational economic decision
b. it is impossible to comment on her decision because we can't engage in interpersonal comparisons of utility
c. her total utility will fall
d. there is no doubt that the utility she gains from working with orchids must be greater than the utility she gains working as a television producer
e. it is clear that working has a negative utility for her
D
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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
Use the following figure to answer the next question.
If the firm is producing at Q1, the area BADE represents the
A. average variable cost. B. total variable cost. C. total fixed cost. D. total cost.
The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases, the
A) average total cost decreases. B) average total cost increases. C) marginal cost increases. D) marginal cost decreases. E) average variable cost is constant and the average fixed cost decreases.
What agreement has been reached to reduce the moral hazard problem and what does it require?
What will be an ideal response?