Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. 
Figure 8.6 Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level
A. between the intersections of curves 1 and 2 and curves 1 and 3.
B. where curves 1 and 2 intersect.
C. where curves 1 and 3 intersect.
D. indeterminate with the given information.
Answer: B
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"Dad said he'd pay for my education whether I go to State or to Ivy College. So I chose Ivy College, even though it'll cost him $15,000 more in tuition each year!" Pick the correct statement:
A) Her opportunity cost is $15,000 each year. B) Her opportunity cost is the satisfaction she would have experienced at State. C) Whether she realizes it or not, her opportunity cost is infinite, just like her dad's love is infinite. D) She has no opportunity cost, because her dad will pay for her education.
Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $45, and average total cost is $67 . To maximize his profit or minimize his loss, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
Public saving is positive when:
A. after-tax income of households and businesses is greater than consumption expenditures. B. after-tax income of households and businesses is less than consumption expenditures. C. the government's budget is balanced. D. there is a government budget surplus.
Which nation achieved the ideal communist society as described by Marx?
A. Castro's Cuba B. Mao's China C. Stalin's Soviet Union D. No nation has achieved Marx's vision of communist society.