Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. If the price of capital is $40, then along isocost line AB total cost is
A. $300.
B. $1,200.
C. $2,400.
D. indeterminate from this information, as the price of labor is not given.
Answer: C
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Suppose firms in a monopolistically competitive industry are currently earning short-run economic profit. In the long run, the demand curve facing each individual firm is likely to:
a. shift to the left and become flatter. b. shift to the left and become steeper. c. shift to the right and become flatter. d. shift to the right and become steeper. e. remain unchanged.
Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the
A) rule of transaction costs. B) double coincidence of wants. C) law of marketability. D) terms of a common denominator.
More than 90 percent of the privately insured, nonelderly population in the U.S. receives group coverage through the workplace. Which one of the following statements is not true about employer-sponsored insurance (ESI) in the U.S.?
a. The workplace is an ideal setting for risk pooling; workers are typically healthier than non-workers are. b. Group coverage provides administrative savings. c. Employees will not purchase insurance voluntarily. The employer must be involved. d. ESI receives favorable tax treatment when the employer pays the premium.
Refer to the above table. Suppose the price of a movie is $5 and the income of the consumer is $29. What are the quantities demanded of hamburger at prices of $2 and $1 respectively?
A. 0; 1 B. 1; 2 C. 3; 5 D. 2; 4