Using Figure 1.3 and PP1, at point A,
A. There is inefficient use of available resources.
B. An increase in the production of mops would definitely require a decrease in the production of brooms.
C. All available resources are being used efficiently.
D. The available technology keeps production inside PP1.
Answer: A
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Suppose a monopolist faces the demand curve shown below. 
The monopolist maximizes its profits by:
A. producing 35 units, since this is where total revenue is maximized. B. charging $70 for each unit. C. producing the level of output at which marginal revenue equals marginal cost. D. producing the level of output at which marginal revenue minus marginal cost is greatest.
Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Sandra produces 18 sweaters per day, what is her average total cost?
A) $5.00 B) $6.67 C) $9.44 D) $10.00
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
The curve labeled A is upward sloping because:
A. an increase in the demand for mushrooms increases the supply of mushrooms. B. of high fixed costs. C. variable costs increase as output increases. D. of diminishing returns to Moe's variable factors of production.
China's alternative to the IMF is called
A) AIIB. B) ASEAN. C) MERCOSUR. D) TIIP.