Use the figure below to answer the next question. 
An increase in the economy's human capital would
A. shift the production possibilities frontier from CD to AB.
B. move the economy away from point B and toward point A.
C. shift the production possibilities frontier from AB to CD.
D. move the economy away from point A and toward point B.
Answer: C
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Total cost of production refers to the:
A) sum of variable costs and fixed costs. B) product of variable costs and fixed costs. C) difference between variable costs and fixed costs. D) ratio of variable costs to fixed costs.
It is easier for a monopolist to price discriminate between groups for a service than for a good because
A) it is easier to calculate average willingness to pay for services. B) it is easier to distinguish between groups of customers for services than customers for goods. C) it is easier for consumers to resell goods than resell services. D) customers for goods usually do not differ with respect to their average willingness to pay.
For a perfectly competitive firm, when MC is less than MR
A. economic profits must be positive. B. the producer has an incentive to decrease output. C. the producer has an incentive to expand output. D. the producer has no incentive to change production.
Suppose the U.S. government encouraged new teachers to take jobs in underperforming schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying the economic idea that
A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.