Use the figure below to answer the next question. 
Growth of production capacity is shown by the
A. shift from CD to AB.
B. movement away from point B and toward point A.
C. movement away from point A and toward point B.
D. shift from AB to CD.
Answer: D
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Based on the data in the table above, at the short-run equilibrium
A) the unemployment rate is less than the natural unemployment rate. B) the unemployment rate is greater than the natural unemployment rate. C) the money wage rate will rise in the long run. D) the economy is at full employment.
Externalities exist because
A) private costs differ from social costs. B) private costs are equal to social costs. C) government has created them. D) they are a function of socialism.
An economic model is a(n)
a. philosophical inquiry b. set of numbers that describe a firm (e.g., profits and assets) c. abstract representation of reality d. concrete representation of reality e. ideal to which economic entities are compared
In the circular-flow diagram, households and firms are the decision makers
a. True b. False Indicate whether the statement is true or false