Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer maximizes profits, his average fixed costs will be
A. $2.
B. $7.
C. $11.
D. $24.
Answer: A
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Which of the following is a political function of government but is not a central economic function?
A) determining who has a right to vote B) determining government-sponsored and government-inhibited goods C) providing a legal system to adjudicate property rights D) redistributing income from some individuals to others
Refer to the above diagram. When output decreases from Q1 and the price level increases from P1, then this change will:
A. be caused by a shift in the aggregate supply curve from AS1 to AS3. B. result in a movement along the aggregate demand curve from e2 to e1. C. be caused by a shift in the aggregate supply curve from AS2 to AS1. D. result in a movement along the aggregate demand curve from e1 to e2.
In the expansion phase of a business cycle:
A. the inflation rate and productive capacity decrease. B. the inflation rate decreases, but productive capacity increases. C. employment and output increase. D. employment increases, but output decreases.
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make 75 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks.
A. Atlantis; Atlantis B. Pacifica; Pacifica C. Atlantis; Pacifica D. Pacifica; Atlantis