In order to be drawn correctly, the minimum of the AVC is
A. vertically straight down from the minimum of the ATC (neither to the right nor left).
B. to the left and up of the minimum of the ATC.
C. to the left and down from the minimum of the ATC.
D. to the left and up from the minimum of the MC.
Answer: 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
Which of the following is NOT a criticism that has been leveled at the World Bank?
A) Since 1990, the World Bank has loaned mostly to African countries, to the detriment of nations in other parts of the world. B) Too many loans go to nations capable of privately financing their projects. C) Some countries receiving World Bank loans are net lenders of funds to other nations and so should not be receiving World Bank funds. D) Despite receiving loans from the World Bank, economic growth in many client nations has been disappointing.
The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to
A) $400,000. B) $800,000. C) $500,000. D) $200,000. E) More information is needed to determine the total tax revenue.
In the short-run macroeconomic equilibrium
A) real GDP equals potential GDP and aggregate demand determines the price level. B) the price level is fixed and short-run aggregate supply determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand. D) real GDP is always less than potential GDP.