Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. The shoe manufacturer currently produces 50 units of output. If this shoe manufacturer increases labor from 15 to 20, the marginal product of the 20th worker
A. is zero, as the total number of shoes produced remains at 50.
B. is 8.5, as capital can be reduced by 8.5 units when the 20th worker is hired.
C. cannot be determined because output remains constant.
D. cannot be determined because both capital and labor have been increased.
Answer: C
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Suppose two economies, the United States and Saudi Arabia, each have a GDP of $1,000 . A U.S. war effort involves the purchase of $100 of Saudi oil, which is financed by selling $100 worth of U.S. government bonds to Saudi Arabia. In subsequent years, GDP remains at $1,000 for each country and the United States imposes a $10 tax to make its debt payments to the Saudis. Now while the United States
is still debt obligated, a. U.S. consumption is $1,000 and Saudi consumption is $1,000 b. U.S. consumption is $990 and Saudi consumption is $990 c. U.S. consumption is $1,010 and Saudi consumption is $990 d. U.S. consumption is $1,000 and Saudi consumption is $1,010 e. U.S. consumption is $990 and Saudi consumption is $1,010
Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them
a. True b. False Indicate whether the statement is true or false
There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.
Answer the following statement true (T) or false (F)
Comparative advantage is
A) the ability to produce more output from given inputs than another producer can. B) the ability to produce a good at a lower opportunity cost than other producers. C) the ability to produce more output of all goods than anyone else can. D) the ability to produce all goods at lower costs than anyone else can.