1. Josie recently purchased a cow-print bucket hat for $20. Since this voluntary transaction took place in a free market, it would be reasonable to infer that A. her buyer's reservation price for the item was at most $20 (i.e., $20 or less). B. her buyer's reservation price for the item was at least $20 (i.e., $20 or more). C she realized a negative Consumer's Surplus from buying the item. D. the Social Surplus generated from her purchase was negative. 2. One of the Three Fundamental Economic Questions asks, "Who gets to consume the goods and services that we have chosen to produce?" This question was described as the A. production decision. B. resource use decision. C. distributional decision. D. incentive decision. 3. "New Soviet Man" refers to a person that A. lives in a world without scarcity. B. is motivated primarily by malice. C. is motivated primarily by selfless benevolence. D is rational and self-interested. 4. Consider the level of economic freedom in Greece, Mexico, and Spain. According to the results of the "Economic Freedom of the World" study, of these three countries, the amount of economic freedom is A. greatest in Mexico and least in Spain. B. greatest in Mexico and least in Greece. C. greatest in Spain and least in Greece. D. greatest in Greece and least in Mexico