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1. Efficiency means that

2. Which of the following is a normative statement?


3. Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are


4. A situation where people have unlimited wants but face limited resources is known as _____________.


5. Matt graduated from the College with a degree of education last year. He is not working now but still actively looking for a job. He is hoping to stay in the Rockville, Maryland, where his girl friend for 10 years resides, which is the reason he still cannot find a job yet.

The current economy is considered “normal”, which the total unemployment is around the average natural rate of unemployment.

Matt is categorized by the government as ________.


6. What is the order of stages for a typical business cycle?

7. The term inflation is used to describe a situation in which

8. If the consumer price index was 100 in the base year and 107 in the following year, then the inflation rate was
9. How many unemployment rates do we have in the USA and what is the official one among them?

10. Refer to Figure 2. If the demand curve shifts from D1 to D, then


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