The principle of comparative advantage explains how
A. one nation can take advantage of another one through international trade.
B. two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
C. one individual can take advantage of another through international trade.
D. some people are good at producing everything, while others have no comparative advantages.
E. some nations end up with large trade surpluses.
Answer: B
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In tit-for-tat, if your partner ________ in your first interaction, then you will ________ in your next interaction.
A. defects; defect B. defects; cooperate C. defects; refuse to play D. cooperates; defect
Variable costs increase when output rises.
Answer the following statement true (T) or false (F)
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Diminishing marginal product sets in with the:
A. fourth worker.
B. third worker.
C. fifth worker.
D. second worker.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward