If there is unemployment in an economy, then the
A) economy is operating at an unattainable point.
B) production possibilities frontier will shift inwards.
C) production possibilities frontier must be bowed inward.
D) economy is producing at a point inside the production possibilities frontier.
E) production possibilities frontier will shift outwards.
D
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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
Refer to Figure 5-9. Let's suppose the government imposes a tax of $50 per unit of toilet paper to bring about the efficient level of production. What happens to the market price of toilet paper?
A) It rises by more than $50 per unit. B) It rises by $50 per unit. C) It rises by less than $50 per unit. D) It remains the same because the tax is imposed on producers who create the externality.
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved from those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
Refer to the graph above. Over the $5-$6 range, supply is:
A. elastic. B. one. C. zero. D. inelastic.