If Papagna's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.00 and that the average total cost of making 499 pizzas is $3.30, then
a. average costs are rising at Q = 500
b. average costs are falling at Q = 500
c. total costs are falling at Q = 500
d. average variable costs must be falling
e. average variable costs must be rising
B
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Which of the following is an example of crowding out?
A) A decrease in the rate of growth of the money supply which causes a decrease in Real GDP. B) A budget deficit causes an increase in interest rates, which causes a decrease in investment spending. C) An increase in tariffs which causes a decrease in imports. D) A decrease in government housing subsidies which causes an increase in private spending on housing.
A high school student who voluntarily includes a writing sample with their college application is an example of:
A. statistical discrimination. B. signaling. C. screening. D. building a reputation.
Direct marketing is
A) advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders. B) advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio. C) advertising targeted at specific consumers. D) advertising intended to reach as many consumers as possible.
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The efficient amount of fertilizer is
A. zero because any level of production involves an external cost. B. 50 bags. C. 60 bags. D. indeterminate from this information.