Select the best answer to each question.

1.An example of capital as a resource is: a.stocks and bonds b.the experience of a pilot c.the stove in a restaurant d. natural gas 2. All points on the PPC are equally: a.efficient b.inefficient c.desirable d.none of the above 3. Trade between two parties is based on: a.absolute advantage b.disassociated cognition c.comparative advantage d.arbitrage 4.Your marginal benefit of producing a sequel is $65m and your marginal cost is $75m. You should: a.produce the sequel b.not produce the sequel c.insufficient information d. none of the above 5.Diminishing returns happens because: a.one input 1s fixed b.no input is fixed c.all inputs are fixed d.none of the above 6.The period where GDP is lowest at the end of a recession right before recovery begins is called: a.peak of a business cycle b.the trough of a business cycle c.the loche of a business cycle 7.Net exports are negative when there is a: a.trade deficit b.trade surplus c.budget surplus d.budget deficit 8.New residential construction is part of: a.Investment b.Consumption c.Net Exports d.Infrastructure 9.The largest component of GDP spending is: a.Consumption b.Investment c.Government spending d.Net Exports 10.If you start with 300 sheep and your flock grows to 900 in a year, your percentage increase in sheep is: a.600% b.200% .300% d.cannot be determined until you know how many sheep are male