Refer to the information provided in Figure 7.7 below to answer the question(s) that follow. 
Figure 7.7Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant B to isoquant A, the number of roller skates produced
A. decreases.
B. remains constant, but Roller Skates Unlimited uses more capital and more labor.
C. increases.
D. remains constant, but input prices have risen.
Answer: A
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A change in the supply of one factor of production
a. will not change either the marginal productivities or the prices of other factors. b. will not change the prices of other factors, but it may change their marginal productivities. c. will not change the marginal productivities of other factors, but it may change their prices. d. changes the marginal productivities and the prices of other factors.
Cyclical unemployment is defined as unemployment that results from:
A. fluctuations in economic activity. B. structural changes in the economy. C. the aging of the population. D. changes in technology.
If both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________.
A. cannot be predicted, will fall B. cannot be predicted, will rise C. will rise, cannot be predicted D. will fall, cannot be predicted
(Last Word) Art Buchwald's article "Squaring the Economic Circle" humorously describes how:
A. a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision. B. a price increase on a single product eventually leads to rapid inflation. C. an increase in imports eventually leads to a greater increase in exports. D. a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.