Which of the following statements is INCORRECT regarding the model for information products?
A. In the long run, accounting profit is positive.
B. Average total costs slope downward, because average variable cost is constant, average fixed cost slopes downward.
C. The firm maximizes profit by setting the price of its product equal to marginal cost.
D. Marginal cost equals average variable cost.
Answer: C
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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 should be used to compare the incomes of countries with huge differences in cost of living?
A) Gross national product B) Exchange rate-based measure of income per capita C) Income per working age population D) PPP-based measure of income per capita
An increase in the minimum wage will likely:
What will be an ideal response?
Policies that reduce the time it takes unemployed workers to find new jobs
a. can reduce both frictional unemployment and the natural rate of unemployment. b. can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. c. cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. d. cannot reduce either frictional unemployment or the natural rate of unemployment.