Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line would shift from CE to CD if
A. the price of capital increased.
B. the firm's total expenditure on inputs increased.
C. the price of labor increased.
D. either the price of labor increased or the firm's total expenditure on inputs increased.
Answer: C
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If a health insurer charges a rate equal to the average cost of health care for the entire population, then it is likely that
A) everyone buys health insurance. B) unhealthy people will not buy health insurance. C) healthy people will not buy health insurance. D) nobody will buy health insurance.
Last year you purchased 20 shirts at $15 apiece, 30 CDs at $12 each, and 5 sweaters at $25 apiece. This year you buy 20 shirts at $20 apiece, 30 CDs at $12 apiece, and 5 sweaters at $20 a apiece. If last year's index was 100, this year's index is
A) 91.3. B) 102.0. C) 109.5. D) 9.5.
Productive efficiency means producing without:
a. cost. b. wages. c. waste. d. competition.
Sony is considering a 10 percent price reduction on its LCD television sets. If the demand for sets in this price range is inelastic:
A. revenues from LCD sets will remain constant. B. revenues from LCD sets will decrease. C. the number of LCD sets sold will decrease. D. revenues from LCD sets will increase.