A firm's economic profit includes all opportunity costs incurred by the firm
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 5-1. At the market equilibrium, the deadweight loss is equal to
A) $0. B) $500,000. C) $1,000,000. D) $2,000,000.
Technological improvement
A) can hide the presence of diminishing returns. B) can be shown as a shift in the total product curve. C) allows more output to be produced with the same combination of inputs. D) All of the above are true.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the amount of capital increases from 3 to 4 units, the marginal product of the fourth unit of labor
A. decreases by 12 units. B. increases by 5 units. C. increases by 8 units. D. decreases by 3 units. E. none of the above
Refer to the graph shown.
We would expect that if the two countries trade with each other (and neither trades with the rest of the world):
A. Norstrilia will export both goods to Graustark, which will have a permanent trade deficit. B. Norstrilia will export agricultural goods and Graustark will export manufactured goods. C. Norstrilia will export manufactured goods and Graustark will export agricultural goods. D. Graustark will export both goods to Norstrilia, which will have a permanent trade deficit.