Which of the following statements is true?
A) The economy can operate outside (or beyond) its institutional PPF and its physical PPF, but only for a short while.
B) The economy can operate outside its physical PPF, if only for a short while, but can never operate outside its institutional PPF.
C) The economy can operate outside its institutional PPF, if only for a short while, but can never operate outside its physical PPF.
D) The economy can never operate outside its institutional PPF or its physical PPF, even for a short while.
E) none of the above
C
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If marginal utility is zero, total utility is
A. at its maximum. B. falling. C. zero. D. negative.
The primary economic advantage of the European Union (EU) to its members is that:
A. the tax structures of each participating nation have been made nearly identical. B. each nation is free to formulate its own antitrust and agricultural policies. C. participating nations must all use a common currency. D. the reduction of trade barriers permits producers to achieve mass-production economies.
Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 and Acme matches the price cut, then if consumers are evenly split between the two firms, Acme's economic profit will be ________.
A. $100 B. $75 C. $150 D. $200
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A