The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $4.00 and its AFC is $3.00. What should Taste Freeze do?
A. Continue to produce because price exceeds AVC.
B. Shut down and produce zero sandwiches because price is less than ATC.
C. Increase production so that AFC will decrease.
D. Decrease production so that AVC will decrease.
Answer: A
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Income is measured as
A. Neither a flow nor a stock. B. Both a flow and a stock. C. A stock only. D. A flow only.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.
A. $2,000 B. $4,000 C. $6,000 D. $3,000
In 2009, the United States balance of trade deficit with China was about 4 times as large as the balance of trade deficit with Canada
a. True b. False
Which of the following is true?
A. The poverty rate among the elderly is greater than the poverty rate among children. B. The poverty rate among blacks is greater than the poverty rate among whites. C. The poverty rate among Hispanics is less than the poverty rate among whites. D. The poverty rate among men is greater than the poverty rate among women.