In a competitive industry the market-determined price is $12. A firm is currently producing 50 units of output; average total cost is $10, marginal cost is $15, and average variable cost is $7. In order to maximize profit, the firm should:
A. produce more because the firm is earning a profit of $100.
B. produce more because the next unit of output increases profit by $2.
C. keep output the same because the firm is earning a profit of $100.
D. produce less because the last unit of output decreased profit by $3.
Answer: D
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Suppose a monopolist faces the demand curve shown below. 
This demand curve can be used to determine:
A. the impact of advertising on demand. B. the monopolist's total revenue at different price and quantity combinations. C. the total cost associated with producing different levels of output. D. the marginal cost associated with producing different levels of output.
A nation's account with the International Monetary Fund denominated in special drawing rights is
A) the quota subscription. B) the account at the World Bank. C) portfolio investment. D) the account at the Fed.
Gross domestic product is equal to the market value of all goods and services
a. exchanged during a period. b. produced domestically during a period. c. produced by the citizens of a nation during a period. d. produced domestically during a period minus the depreciation of productive assets.
Which of the following best describes the federal budget during the 1990s?
A. The relative size of the deficit fell. B. There was a steady downward trend in the relative size of the deficit. C. The absolute size of the deficit fell. D. The absolute size of the debt grew to over $5 trillion.