Refer to the above figure. Suppose the economy is at C. If the government tried to reduce the unemployment rate to 3 percent, the new long-run outcome will be at point
A. D.
B. H.
C. A.
D. C.
Answer: B
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The figure below shows the supply and demand curves for oranges in Smallville. 
At the price of $4 per pound, sellers offer ________ pounds of oranges per day, and buyers want to purchase ________ pounds of oranges a day.
A. 30; 10 B. 20; 20 C. 10; 20 D. 10; 30
Europe and Asia both fall into deep economic recessions. What impact will this have on U.S. aggregate demand
A) None. A nation’s aggregate demand is only a3ected by its own economic conditions. B) U.S. aggregate demand will remain unchanged. C) U.S. aggregate demand will decrease. D) The U.S. aggregate demand curve will shi) to the right.
Sarah is a high school graduate and James is a college graduate. Which of the following statements is true?
A) Sara is likely to have more human capital than James. B) James is likely to have more human capital than Sara. C) Both Sara and James are likely to earn the same wage in the labor market. D) Both Sara and James are likely to have the same amount of human capital.
Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition. The most common reason for this is
A) firms in these markets make high profits. B) there are high barriers to entering these markets. C) firms in these markets sell identical products. D) firms in these markets do not sell identical products.