When prices of products are set below equilibrium,
a. society's resources are inefficiently allocated.
b. firms expand output to increase profits.
c. firms earn excessively high profits.
d. consumers benefit from surpluses of cheap goods.
a
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A summary record of a country's international economic transactions in a given time period is the
A. Current account. B. Balance of payments. C. Capital account. D. Exchange rate balance.
Which of the following is true of an expansionary gap?
What will be an ideal response?
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
Which of the following explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty. b. Poverty arises out of the lack of investment, but they cannot invest because they are poor. c. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods. d. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods.