In a short story the exposition is the introduction of time, place and the characters. It can also be the additional information (backstory) about certain characters in the story.
Question: Which of the following is an example of the exposition of a short story?
Answer: A. In "The Lottery," the Hutchinsons are the unlucky family. ( you would think that when winning a lottery you would be happy and feel lucky, but this lottery was not for luck, but death.)