Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the firm's cost of capital is $15 per unit and its cost of labor is $30 per unit, the isocost line represents a total cost of
A. $2,000.
B. $3,000.
C. $6,000.
D. $8,000.
Answer: B
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The question of "What goods and services get produced?" most closely relates to which of the following issues?
A) obtaining specialized training to increase one's income B) building a missile defense system, or putting a computer in every elementary school classroom C) taxing high income workers to give payments to poor households D) the distribution of goods and services in the economy E) producing goods and services in the least costly manner
Which of the following would NOT tend to increase the buying price in an oligopsony?
A) More buyers in the market B) Collusion among the buyers C) More elastic supply D) Rightward shift in the MV curve
Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ________ and wages in the computer industry ________.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase
Which of the following statements is NOT true about the production function?
A) It gives the maximum output that can be obtained for a given level of inputs. B) A new production function does not have to be developed when there is technical progress since technology is included in the function. C) The production function depends upon the level of technology available to the firm. D) It specifies the cost of inputs necessary to produce a certain level of outputs.