A country can benefit by indulging in international trade when:
a. it produces a good in which it has absolute disadvantage.
b. it produces a good in which its trading partner has an absolute advantage.
c. it produces a good in which it has comparative advantage.
d. it produces all the goods which are supported by its resources.
e. it produces nothing and merely depends on foreign imports.
c
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A perfectly competitive firm should continue to expand output until
a. total revenue exceeds total costs. b. total revenue exceeds variable costs. c. marginal revenue equals marginal costs. d. average revenue equals variable costs.
The present discounted value of a future payment will decrease when the
A. Opportunity cost of money decreases. B. Interest rate increases. C. Future payment is closer to the present. D. Risk of nonpayment increases.
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy and Amy both get 125. B. Tracy gets 25 and Amy gets 225. C. Tracy gets 300 and Amy gets 200. D. Tracy gets 75 and Amy gets 150.
To reconcile net national product and national income,
a. national income is calculated first, and capital depreciation is subtracted from it to get net national product b. national income is calculated first, and indirect business taxes are subtracted from it to get net national product c. net national product is calculated first, and indirect business taxes are subtracted from it to get national income d. net national product is calculated first, and compensation of employees is added to it to get national income e. gross national product is calculated first, and capital depreciation plus nonfactor charges are subtracted to get national income