Explicit costs:
A. are variable in the short run.
B. measure the opportunity costs of the resources supplied by the firm's owners.
C. measure the payments made to the firm's factors of production.
D. are fixed in the short run.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Suppose a ski resort decides to sell its lift tickets "below cost" all season long, charging $20 per day as opposed to $30 per day. In principle, how would each ticket sale affect GDP?
A) GDP would fall by $10. B) GDP would rise by $10. C) GDP would rise by $20. D) GDP would rise by $30 after the appropriate cost-price adjustment has been made.
Diminishing returns set in with the _____ worker.
The prisoners’ dilemma illustrates the conflict between ______ and ______.
a. monopoly; perfectly competitive markets b. individual rationality; group rationality c. cartels; non-colluding oligopolists d. game theory; dominant strategies