In economics, what is meant by “absolute advantage”?
a. entrepreneurial ability
b. using fewer resources
c. lower opportunity cost
d. having the most workers
b. using fewer resources
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If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________
A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged
If the exchange rate between the U.S. dollar and the European euro went from $1.20 US = 1 euro to $1.10 US = 1 euro, then
a. European goods have become less expensive for Americans. b. American goods have become less expensive for Europeans. c. American exports to Europe are likely to increase. d. American imports from Europe are likely to decrease.
Refer to the table below. What is the price that yields the maximum total revenue?
 A. $2 B. $3 C. $4 D. $5
Refer to the information provided in Figure 16.3 below to answer the question(s) that follow. 
Figure 16.3Refer to Figure 16.3. At 20 units of output there are external
A. costs of $2 per unit. B. benefits of $2 per unit. C. costs of $5 per unit. D. benefits of $5 per unit.