The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is:
A. Allocative efficiency
B. Productive efficiency
C. The consumer surplus
D. The producer surplus
C. The consumer surplus
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Which of the following statements is true?
A) In the short run, a firm can vary all its inputs. B) In the long run, a firm cannot vary any of its inputs. C) Short-run cost curves lie above long-run cost curves. D) Short-run cost curves lie below long-run cost curves.
If a firm’s marginal product of labor is currently 75 units of output, the wage is $15 per unit of labor, and output sells for $0.80 per unit, the firm should
a) shut down production b) hire fewer workers c) maintain its current workforce, but at fewer hours per worker d) keep the current number of employees and hours worked e) hire more labor
Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation B. Nominal inflation C. Core inflation D. Hyper inflation