Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8 The firm?s isocost line could shift from CE to CD if
A. the firm?s total expenditures decreased by 33% or the price of capital and labor each increased by 50%.
B. the firm?s total expenditures decreased by 33%.
C. the price of capital increased.
D. the price of labor increased by 33%.
Answer: D
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Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering from a loss of $1,000, the cost of producing and selling an additional Christmas tree is $20, and the current market price is $25. The owner
A) should sell more trees. B) should shut down his business now. C) should advertise in the market. D) is already minimizing his loss.
Banks help to overcome the problem of asymmetric information by: a. lending to a single rich borrower and not diversifying their portfolio. b. acquiring expertise in evaluating the credit histories of borrowers. c. threatening borrowers
d. offering only one type of loan. e. providing information to lenders.
A potential entrant knows that it faces a (inverse) residual demand curve given by P = 90 ? 3Q. While the entrant does not know the inverse market demand, it does know that the incumbent committed to producing 10 units. Using this information, which of the following equations best summarizes the inverse market demand curve?
A. P = 80 ? 3Q B. P = 60 ? 3Q C. P = 50 ? 3Q D. None of the statements is correct.
Which of the following is not one of the three purposes served by money?
A. Serving as a store of value B. Providing a standard of value C. Providing a means for regulators to track economic activity D. Serving as a medium of exchange