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; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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It's not unusual for strangers driving through a small town to find a gas station more quickly than people driving through a major city center
According to the economic way of thinking, gas stations in city centers appear few and far between because A) big cities are just plain confusing to out-of-towners. B) the real estate space available for gas stations has more valuable alternative uses. C) the opportunity cost of placing additional gas stations in city centers is too low. D) the owner of gas stations would rather have people drive further distances and thereby use more gasoline.
An increase in the marginal propensity to consume necessarily reduces the marginal propensity to save
a. True b. False Indicate whether the statement is true or false
A decrease in the demand for musicians ________ the number of musicians employed, and ________ the wages paid to musicians.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade.
A. Students who miss more than three classes are irrational. B. The teacher is assuming that students are irrational, and she must force them to attend class. C. This is an example of a positive incentive for students to attend class. D. This is an example of a negative incentive for students to attend class.