If the quantity of money demanded exceeds the quantity of money supplied, then the:
A. equilibrium interest rate stays the same.
B. equilibrium interest rate will increase.
C. equilibrium interest rate will decrease.
D. effect on the equilibrium interest rate is indeterminate.
Answer: B
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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 true?
i. The supply of a good is inelastic if when its price changes, the percentage change in the quantity supplied exceeds the percentage change in price. ii. Price elasticity of supply equals the percentage change in the quantity supplied divided by the percentage change in price. iii. If demand is price elastic, a rise in price leads to a decrease in total revenue. A) only i B) only ii C) only iii D) i and ii E) ii and iii
Which of the following is correct?
A. AC = AFC/Q B. AC = AFC + AVC C. AC = MFC + MVC D. TFC + TMC = MFC + MVC
Which principle states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases?
a. Principle of total cost b. Principle of increasing cost c. Principle of opportunity cost d. Principle of increasing marginal utility