A falling interest rate affects the demand for consumer __________ and shifts the AD curve to the __________
A) nondurables; right
B) nondurables; left
C) durables; right
D) durables; left
C
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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; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The value of a household's assets minus the value of its liabilities is called
A) wealth. B) income. C) debt. D) stock.
Exhibit 2-8 Production possibilities curve data A B C D E F Capital goods15 14 12 9 5 0 Consumer goods 0 2 4 6 8 10 As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:
A. the quantity of consumer goods produced can never be zero. B. the labor force in the economy is homogeneous. C. greater amounts of capital goods must be sacrificed to produce an additional 2 units of consumer goods. D. a graph of the production data is a downward-sloping straight line.
Joe's Butcher Shop is producing where MR = MC; Joe's Butcher Shop must be
A. incurring a loss. B. earning a zero economic profit. C. maximizing revenue but not maximizing profits. D. maximizing profits.