If two goods can be made with essentially the same inputs, which one of the collection of supply and demand diagrams above shows the result of an increase in the price of one on the market for the other?
A. Figure 1
B. Figure 2
C. Figure 3
D. Figure 4
Answer: 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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Answer the following statement(s) true (T) or false (F)
1. Nature’s capacity to convert matter and energy is limitless. 2. According to BMW Group, plastics are among the simplest materials to recycle. 3. Natural pollutants are those linked to human activity. 4. Chemical wastes associated with the manufacturer of solvents are anthropogenic pollutants. 5. An airplane is a point source of pollution.
If the world price of a good is lower than its domestic equilibrium price, the country will:
a. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. b. export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. c. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers. d. export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically. e. import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.