If a production possibilities frontier (PPF) is concave outward, it follows that
A) opportunity costs are constant between two goods.
B) the opportunity cost (of producing the good on the horizontal axis) rises as more of the good is produced.
C) the opportunity cost (of producing the good on the horizontal axis) falls as more of the good is produced.
D) the opportunity cost (of producing the good on the horizontal axis) first rises and then falls as more of the good is produced.
E) none of the above
B
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When a country pursues its comparative advantage:
A. World output is minimized. B. Potential gains from trade are minimized. C. Potential gains from trade are maximized. D. Imports and exports are equal.
Suppose cars are taxed according to the amount of pollution they emit per gallon of gasoline consumed. We would expect to observe all of the following EXCEPT
A) an increase in quantity demanded of less-polluting automobiles and a reduction in quantity demanded of more-polluting automobiles. B) an increase in quantity demanded of more fuel-efficient cars. C) an increase in production of automobiles that were less polluting. D) an increase in the miles driven.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. Micro Oven's average fixed costs of producing three units of output are
A. $100. B. $150. C. $166.67. D. indeterminate from this information.
Adverse selection is a situation in which asymmetric information results in low-quality goods or low-quality consumers being squeezed out of transactions because they are unable to demonstrate their quality.
Answer the following statement true (T) or false (F)