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
Answer: B
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That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of
A) competition. B) absolute advantage. C) scarcity. D) comparative advantage.
Suppose that for Jason the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10 . For his snack, Jason should buy
a. the caviar if he has the $50; otherwise the popcorn b. the caviar if he has the $50; otherwise nothing c. the popcorn, whether he has the $50 or not d. one serving each of the caviar and popcorn, if he has $51 e. five servings of popcorn for each serving of caviar
We don't typically see wages __________ in response to an economic upswing because ____________.
A. rise; they are "sticky," and are slow to respond to shifts in the economy B. rise; they cannot rise above the equilibrium in any circumstance C. fall; they are "sticky," and are slow to respond to shifts in the economy D. fall; they cannot fall below where they were previously set due to inflation
All other things being equal, an increase in the supply of labor will lead to a fall in the wage
a. True b. False Indicate whether the statement is true or false