The income effect of an increase in the price of salmon
A) refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant.
B) is the change in the demand for salmon when income increases.
C) refers to the relative price effect—salmon is more expensive compared to other types of fish—which causes the consumer to buy less salmon.
D) is the change in the demand for other types of fish, say trout, that results from a decrease in purchasing power.
A
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Which of the following is an example of a positive externality (additional social benefit)?
A. an increase in the value of land you own when a nearby development is completed B. falling property values in a neighborhood where a disreputable nightclub is operating C. the costs paid by a company to build an automated factory D. the higher price you pay when you buy a heavily advertised product
Along its long-run total cost curve, a firm is producing
a. at the output level for each plant size that has the lowest cost b. at the minimum points of its various total cost curves c. each level of output using the input mix that has the lowest cost d. each level of output using the fewest possible inputs e. at the output level for each plant size that uses the fewest possible inputs
According to economists, money is a resource
Indicate whether the statement is true or false
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