Consider the two following statements: I. x is an inferior good. II. x exhibits Giffen's Paradox. Which of the following is true?
a. I implies II, but II does not necessarily imply I.
b. II implies I, but I does not necessarily imply II.
c. I and II are statements of the same phenomenon.
b
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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
The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.
Answer the following statement true (T) or false (F)
Suppose that each of 10,000 perfectly competitive firm in an industry produces 1,000 units of a good and earns an economic profit when the price of the good is $10. In the long run, definitely
A) each firm increases its production above 1,000 units. B) the number of firms is more than 10,000. C) consumer surplus decreases. D) producer surplus increases. E) the number of firms is less than 10,000.
The Bureau of Labor Statistics complies two different types of market baskets, to reflect the spending habits of two different types of people:
a. All Urban Workers (CPI-U) and All Farm Workers (CPI-F) b. All Urban Workers (CPI-U) and Urban Low Wage Workers (CPI-LW) c. All Urban Workers (CPI-U) and Urban Wage Earners and Clerical Workers (CPI-W) d. All Urban Workers (CPI-U) and All Rural Workers (CPI-R) e. All Urban Workers (CPI-U) and Urban Service Workers (CPI-S).