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
Answer: D
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In Wealth of Nations, Adam Smith described the concept of division of labor and specialization by using an illustration of a visit to a
a. chicken farm b. pin factory c. bakery d. blacksmith e. town hall
Whenever firms in a perfectly competitive market produce the output level where marginal revenue equals marginal cost, we know that the firm is earning an economic profit
a. True b. False Indicate whether the statement is true or false
As disposable income rises, consumption:
a. Increases and saving decreases b. And saving both decrease c. Decreases and saving increases d. And saving both increase
If the graph shown represents Hanna's budget constraint, and the price of hairbands were to decrease, the slope of Hanna's budget constraint would become:
A. flatter, reflecting the fact that earrings are now relatively more expensive. B. flatter, reflecting the fact that hairbands are now relatively more expensive. C. steeper, reflecting the fact that hairbands are now relatively less expensive. D. steeper, reflecting the fact that earrings are now relatively less expensive.