Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. Alan could have experienced a drop in income.
B. Alan could have decided he doesn't like going to the movies as much as he used to.
C. The price of movie tickets could have increased.
D. The price of books could have increased.
Answer: C
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The price of bananas will increase in response to:
A. an excess demand for bananas. B. an increase quantity of bananas supplied. C. an excess supply of bananas. D. an increase in the supply of bananas.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
A collection of assets is known as a(n):
A. asset-backed security. B. portfolio. C. derivative. D. futures contract.
When people are educated, they become:
A. more productive to society, because they have more skills to apply to a job. B. more productive to society, because they are paid more. C. less productive to society, because they require higher pay per hour. D. less productive to society, because they stop working while in school.