If two goods are close substitutes:
a. A decrease in the price of one will increase the demand for the other
b. An increase in the price of one will increase the demand for the other
c. An increase in the price of one will decrease the demand for the other
d. A decrease in the price of one will have no effect on the demand for the other
b. An increase in the price of one will increase the demand for the other
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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
Suppose a consumer advocacy group has convinced legislators that vitamin pills should be free to consumers. Such a policy would enhance the health of the citizenry, they argue
Assuming a downward-sloping linear demand curve and a horizontal long-run supply curve, determine the resulting output and social welfare from such a policy. Compare this result to the competitive equilibrium.
Ford Motor Company was one of the first major companies to adopt a wage structure that is comparable to efficiency wages. What was the outcome of Ford's experiment with efficiency wages?
A) Lower labor force turnover B) Higher labor productivity C) Less absenteeism D) all of the above
The point at which quantity supplied and quantity demanded are the same:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium