According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good X is ________ units of Good Y for Sherry and ________ units of Good Y for Holly.
A. 0.5; 2.5
B. 2; 0.4
C. 25; 100
D. 100; 25
Answer: A
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Which of the following best describes the law of diminishing marginal returns?
a. When more and more of a variable resource is added to a given amount of a fixed resource, the resulting change in output will eventually diminish and could become negative. b. The notion that as a person consumes more and more of a good, such as 12 ounce cups of lemonade, the marginal utility from each additional cup will tend to decline. c. The empirical fact that positive economic profits will tend to decline over time as new firms attracted by the extra-normal profit opportunity enter the market. d. When more and more capital per labor is used in production, the marginal product of labor eventually declines and could become negative.
What is the term economists use to discuss cost on a per-unit-of-output basis?
a. short-run cost b. fixed cost c. variable margin cost d. average total cost
“The more progressive a tax system, the greater is the economy’s built-in stability.” Explain this statement for both recessionary and peak phases of the business cycle.
What will be an ideal response?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C