The ability to produce a good at a lower opportunity cost than others is known as
A) comparative advantage.
B) absolute advantage.
C) specialization.
D) marginal cost production.
Answer: A
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Use the following graph to answer the question. 
Between prices of $5.70 and $6.30
A. D2 is more elastic than D1. B. D1 and D2 have identical elasticities. C. D1 is more elastic than D2. D. D2 is noncomparable to D1.
When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?
a. rent-seeking b. actions that reduce the value of resources c. productive activities d. destructive activities
Which of the following is true when the federal government is running a budget deficit?
What will be an ideal response?
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If the firm produces 50 personalized sweatshirts in the short run, it will
A. not cover any of its costs. B. minimize profits. C. break even. D. minimize losses.