Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. If the price of capital is $20 and the price of labor is $10, the optimal product technique is
A. A.
B. B.
C. C.
D. D.
Answer: D
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if beef demand rises and ranchers are induced to reduce their flocks of sheep (for wool) in order to grow more cattle?
A) Decrease in demand. B) Decrease in supply. C) Increase in demand. D) Increase in supply
The type of financial market where government and corporations can borrow money directly from savers is called:
a. a stock market b. a loanable funds market. c. a financial market. d. a bond market.
If a consumer is initially at an optimum, and then the price of Y decreases, then
A. MUX/PX = MUY/PY. B. MUX/PX < MUY/PY. C. MUX/MUY < PY/PX. D. MUX/PX > MUY/PY.
Because resources are scarce, the opportunity cost of investment in capital is
A. infinite. B. forgone present consumption. C. zero. D. forgone future consumption.