Refer to Scenario 10.8. Suppose that the regulatory agency sets your price where average revenue equals average cost. How much profit will Adriana make?
A) She will lose money and will go out of business.
B) She will break even.
C) She will make a profit.
D) none of the above
B
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Belize, a country in Central America, has a small coffee industry. Suppose Belize does not have free trade but it has comparative advantage in coffee production. If Belize allowed international trade, what would be the gains from trade?
A) Belize coffee producers would gain from trade. B) Belize coffee consumers would gain from trade. C) Belize would gain tariff revenue from trade. D) All of these answers are gains from trade.
Refer to Figure 6-1. A perfectly elastic demand curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The overuse of a common resource relative to its economically efficient use is called
a. the free rider problem. b. the Tragedy of the Commons. c. a public good. d. cost-benefit analysis.
The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Suppose that the Republican candidate tells the Democratic candidate that he intends to run a positive campaign. The likely result is that:
A. both candidates will run a positive campaign. B. both candidates will run a negative campaign. C. the Republican candidate will run a positive campaign, and the Democratic candidate will run a negative campaign. D. the Republican candidate will run a negative campaign, and the Democratic candidate will run a positive campaign.