The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari. 
Who has the greatest comparative advantage in shoe production?
A. Kari
B. Janna
C. Drew
D. None of them
Answer: B
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If an incumbent cannot commit and faces an identical potential entrant with relatively high fixed costs that are below the level where entry is blockaded, the incumbent will
A) produce the Cournot duopolist level of output. B) produce the Stackelberg leader level of output. C) set price equal to marginal cost. D) produce a level of output that is greater than the Stackelberg leader level of output.
Susie knows that too many sugary treats, while delicious when eaten, have long-term adverse effects on weight and health. Based on this information, a behavioral economist would expect Susie to:
A. carefully weigh the short-term benefits against the long-term costs and make a rational decision about how many treats to eat. B. eat more sugary treats than is optimal, as she likely gives more weight to present events and outcomes than to ones in the future. C. give away most of her sugary treats in an effort to resist temptation. D. compute the caloric intake and calculate how many hours of exercise would be needed to burn off the calories from each treat.
Over the long run, a government's fundamental source of revenues is
A. issuing bonds. B. printing money. C. exports. D. user fees and taxes.
Refer to the given data. The domestic opportunity cost of producing 1 ton of steel in Omega is:
A. ½ ton of wheat.
B. 2 tons of wheat.
C. 3 tons of wheat.
D. 5 tons of wheat.