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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Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH. B. EH. C. DE. D. DB.
Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources
Indicate whether the statement is true or false
Adverse selection arises when:
A. the wants of both parties are aligned with one another. B. buyers and sellers have different information about the quality of a good or the riskiness of a situation. C. buyers and sellers with the same information about the quality of a good or the riskiness of a situation seek each other out. D. people behave in a riskier way because they have incomplete information.
The key difference between supply in the short run and supply in the long run is that we assume that firms:
A. are able to enter and exit the market in the short run. B. are able to enter and exit the market in the long run. C. will not collude in the short run. D. will have a total supply that is constant in the long run.