Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. At Point C, the slope of isoquant q2 = 200 is
A. -2.
B. -1/2.
C. -1.
D. indeterminate from this information.
Answer: A
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If concerns about mad-cow disease impose economic losses on the perfectly competitive cattle ranchers, exit by the ranchers combined with no further changes in the demand for beef will force the price of beef to
A) decrease. B) not change. C) increase. D) fluctuate, with the trend being lower prices. E) probably change, but more information about the market supply of beef is needed to answer the question.
A competitive price-searcher market is characterized by firms
a. being able to choose their price and by low barriers preventing firms from entering or leaving the market. b. being able to choose their price and by high barriers preventing firms from entering or leaving the market. c. having to accept the market price for their product and by high barriers preventing firms from entering or leaving the market. d. having to accept the market price for their product and by low barriers preventing firms from entering or leaving the market.
A firm that generates pollution is illustrated in Figure 9.7. Suppose the government is considering changing the pollution tax from P3 to P2. That new policy would:
A. increase the marginal benefit to firms of abating, and thus encourage greater abatement. B. increase the marginal benefit to firms of abating, causing them to generate more pollution. C. reduce the marginal benefit to firms of abating, causing them to generate more pollution. D. reduce the marginal benefit to firms of abating, and thus encourage greater abatement.
A country will specialize in the good for which
A) it has absolute advantage. B) it has moderate production costs. C) it can produce at minimum average cost. D) it has comparative advantage.