Refer to Figure 2-8. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?
A) Costa Rica B) Guatemala
C) neither country D) cannot be determined
C
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When we say most Americans are in the 15-percent tax bracket, we mean federal taxes are about 15 percent of the income of most Americans.
Answer the following statement true (T) or false (F)
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 What is the marginal cost of production between 80 and 120 units of output each day?
A. $70 B. $14 C. $1.75 D. $1.40
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. If the price of capital is $20, then along isocost line AB total cost is
A. $300. B. $1,200. C. $2,400. D. indeterminate from this information, as the price of labor is not given.
To accomplish its purpose a linear profit-sharing contract must
a. induce the employee to moonlight b. communicate a code of conduct that will be monitored and enforced c. meet either the participation or the incentive compatibility constraint d. establish a separating equilibrium e. not realign incentives