Use the information provided in Table 7.1 below to answer the question(s) that follow.
Table 7.1Inputs Required to Produce a Product Using Alternative Technologies 
Refer to Table 7.1. If the hourly wage rate is $7 and the hourly price of capital is $10, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: C
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Zero correlation between two variables implies that:
A) change in one variable causes the other to change. B) both variables move in the same direction. C) the variables are not related to each other. D) both variables move in the opposite direction.
If the initial distribution of two goods between two people is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate the goods between the two people so as to increase the utility of both people. B) It is possible to reallocate the goods between the two people so as to increase the utility of one person without decreasing the utility of the other. C) It is possible to reallocate the goods between the two people so as to increase the utility of one person, but only at the expense of the other person. D) It is impossible to reallocate the goods between the two people so as to increase either person's utility. E) none of the above
A rise in the price level because of an increase in the money wage rate
A. definitely triggers a cost-push inflation B. definitely triggers a demand-pull inflation C. might trigger a cost-push inflation D. might trigger a demand-pull inflation.
Which one of the following is an example of passive policymaking?
A. introducing expansionary monetary policy to combat inflation B. introducing expansionary fiscal policy to combat a recession C. following a predetermined monetary policy rule D. introducing expansionary monetary policy to combat a recession