Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
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Refer to Figure 4.1. A Nash equilibrium can be found at
A) (Up; Top; Left) B) (Up; Top; Right) C) (Down; Bottom; Right) D) There is no Nash equilibrium.
If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n):
A. upward movement along the supply curve for cigarettes. B. rightward shift of the supply curve for cigarettes. C. downward movement along the demand curve for cigarettes. D. leftward shift of the supply curve for cigarettes.
Which of the following is a microeconomic question?
A) How much will be saved and how much will be produced in the entire economy? B) What will the level of economic growth be in the entire economy? C) What factors determine the price of carrots? D) What determines the average price level and inflation?
When a firm raises the price of its product, what happens to its total revenue?
A) If demand is elastic, total revenue decreases. B) If demand is unit elastic, total revenue increases. C) If demand is inelastic, total revenue decreases. D) If demand is elastic, total revenue increases. E) If demand is unit elastic, total revenue decreases.