A utility-maximizing consumer is currently spending all of his/her income on two products, A and B. The MU of the last unit of A consumed is 50, the price of A is $25, and the price of B is $10. The MU of the last unit of B consumed is:
A. 50.
B. 5.
C. 2.
D. 20.
Answer: D
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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
When the Fed prints and issues bills, it creates:
A. a financial liability for the holder of the IOU. B. a real asset. C. a financial asset for itself. D. money.
The standard of living in a nation depends on
A) how well its economy functions relative to other countries. B) the size of the country, with larger nations always doing better than smaller ones. C) how well the economy functions within that country. D) whether or not its currency is adopted as the world's monetary standard.
The amount of money income received in a given time period, measured in current dollars, is
A. Nominal income. B. Asset income. C. Fixed income. D. Real income.