In Figure 2.1, Box 2 would be labeled 
A. P* for equilibrium price.
B. P for price.
C. D for demand.
D. S for supply.
Answer: D
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The textbook uses as its precise definition of hyperinflation an inflation rate
A) below zero. B) of less than one percent per year. C) of more than one hundred percent per year. D) of more than one thousand percent per year. E) of more than fifty percent per month.
Mary says she plans to return to college next semester assuming her car keeps running, tuition fees don't go up, and she will still have a student loan. An economist would say that Mary plans to return to college next semester
A) caveat emptor. B) ceteris paribus. C) laissez faire. D) post hoc ergo propter hoc
Economists Robert Jensen and Nolan Miller reasoned that to be a Giffen good, with an income effect larger than its substitution effect, a good must be ________ and make up a ________ portion of a consumer's budget
A) a normal good; very small B) an inferior good; very small C) a normal good; very large D) an inferior good; very large
Answer the following statements true (T) or false (F)
1) Official unemployment statistics overstate unemployment because discouraged workers who are not actively seeking work are counted as unemployed. 2) If the economy's actual GDP is greater than its potential GDP, then there is high unemployment in that economy. 3) The unemployment rate among teenagers tends to be lower than the unemployment rate among adults. 4) If the CPI rises from 125 to 140 from one year to the next, then the rate of inflation is 15 percent. 5) Inflation means that the prices of all items in the economy are increasing.