To counteract relative price changes, the government would implement:
A. polices that affect the supply and demand for a specific good.
B. fiscal policy.
C. monetary policy.
D. policies that affect the supply and demand for all goods and services.
Answer: A
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Refer to Resource Supply/Demand. If the government confiscates the rent and pays the owner area D to supply Q0 units of the resource at a zero price, then
The following questions refer to the accompanying graph, which shows the supply and demand for a resource. The owner of the resource is receiving the price P0 and is providing the quantity Q0.
a. area B + C is transferred from the resource owner to the government with no loss in social gain.
b. area A + B + C overestimates the social gain that will be created.
c. demanders will continue to receive area A + B + C + D in value from the resource.
d. a deadweight loss equal to area B + C will be created.
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
If the quantity of money supplied ________ the quantity demanded, in the long run the value of money ________
A) is less than; does not change unless the Fed increases the money supply B) exceeds; falls as people spend their surplus money C) is less than; falls as people spend their surplus money D) exceeds; rises as people buy bonds E) equals; equals zero
Refer to the graphs. Stanville has a comparative advantage in producing:
A. product A.
B. product B.
C. both product A and B.
D. neither product A nor B.