When an economy's resources are not fully employed, then it must be true that the:
A. production point is located outside and to the right of the production possibilities curve.
B. production point is located along the production possibilities curve.
C. production point is located inside and to the left of the production possibilities curve.
D. production possibilities curve shifts to the left.
Answer: C
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If a minimum wage is set at W, what will happen to employment in the monopsonistic labor market shown in the diagram above?
A. Employment will decrease
B. Employment will increase
C. Employment will stay the same
D. Employment may increase but usually it tends to stay the same
Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A. The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is more than the amount of resources needed to produce 50 bales of wool and 250 loaves of bread. B. The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is the same as the amount of resources needed to produce 50 bales of wool and 250 loaves of bread. C. Point C cannot be produced. D. The best production point is 500 loaves of bread and 50 bales of wool.
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 is not in the index of leading economic indicators?
A) Average workweek B) Initial unemployment claims C) Building permits D) Producer price index