Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (5 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (10 airplanes, 20 trucks)
Answer: A
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Demand is said to have unit elasticity if the price elasticity of demand is
a. less than 1. b. greater than 1. c. equal to 1. d. equal to 0.
The basic tools of supply and demand are
a. useful only in the analysis of economic behavior in individual markets. b. useful in analyzing the overall economy, but not in analyzing individual markets. c. central to microeconomic analysis, but seldom used in macroeconomic analysis. d. central to macroeconomic analysis as well as to microeconomic analysis.
Total income from the domestic production of final goods and services equals
a. only household expenditures on these goods and services b. only household and business expenditures on these goods and services. c. only household and government expenditures on these goods and services. d. the expenditures on these goods and services by whoever buys them.
Refer to the information provided in Figure 17.2 below to answer the question(s) that follow. 
Figure 17.2 Refer to Figure 17.2. We would say that Sam is risk neutral based on his
A. present income. B. income potential. C. past income. D. utility from income.