If demand for a good increases when incomes rise and decreases when incomes fall, the good is called a(n) ______ good.
a. substitute
b. normal
c. inferior
d. complement
b. normal
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How are a firm's short-run and long-run average cost curves related?
a. SRAC is greater than LRAC, which forces the LRAC curve to be upward sloping. b. SRAC and LRAC slope up or down together, but SRAC is always the steeper of the two curves. c. The SRAC curve is tangent to and lies above the LRAC curve. d. The LRAC curve just touches the SRAC curve at its minimum point.
In the figure below, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point: 
A. C. B. D. C. E. D. B
American companies can borrow funds
A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government.
Bob traps lobsters in Maine and sells them to a restaurant in Mexico. Other things the same, these sales
a. increase U.S. net exports and have no effect on Mexican net exports. b. increase U.S. net exports and decrease Mexican net exports. c. decrease U.S. net exports and have no effect on Mexican net exports. d. decrease U.S. net exports and increase Mexican net exports.