The point on the production possibilities curve at which an economy will operate is determined by:
A) which point produces the greatest amount of both goods.
B) the demands of consumers.
C) the absolute prices of the two goods.
D) which point requires the fewest resources.
Ans: B) the demands of consumers.
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The figure below shows a single consumer's demand for ice cream at the student union. 
Fran is one of the students whose demand curve for ice cream is shown above. When price is $4.00, Fran demands ________ scoops a week, and when price is $2.00, Fran demands ________ scoops.
A. 1; 3 B. 2; 6 C. 2; 4 D. 2; 5
Refer to Table 16.1. Use the following statements to answer this question
I. Mexico has an absolute advantage in the production of tomatoes and beer. II. Mexico has a comparative advantage in the production of tomatoes. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because
A) it places a unfair burden on small producers. B) a uniform tax can only account for social costs and not external costs. C) a firm will reduce production. D) it may not adequately account for economic damages.
According to official U.S. statistics, the U.S. poverty rate has been approximately ________ percent for the last 40 years.
A. 4 to 13 B. 11 to 15 C. 12 to 20 D. 5 to 18