Answer the following questions true (T) or false (F)
1. The government makes all economic decisions in a centrally planned economy.
2. When voluntary exchange takes place, only one party gains from the exchange.
3. A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of "for whom to produce."
1. TRUE
2. FALSE
3. FALSE
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In monopoly when abnormal profits are made:
a) The price set is greater than the marginal cost b) The price is less than the average cost c) The average revenue equals the marginal cost d) Revenue equals total cost
Which of the following institutions do economists see as necessary for economic growth?
A. private property rights B. efficient taxes C. stable money and prices D. representative democracy
General Motors purchased Fischer Auto Body to produce bodies to place on a chassis. This transaction is best described as:
A. contract or vertical integration. B. spot exchange. C. vertical integration. D. contract.
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. Prior to the imposition of a payroll tax, this labor market was in equilibrium at a wage of ________ and employment of ________ workers.
A. $5.00; 500 B. $10.00; 700 C. $12.00; 650 D. $7.00; 800