Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC0 to MC1. A profit-maximizing firm should ________ the amount of output produced and ________ its demand for labor.
A. increase; decrease
B. decrease; decrease
C. keep constant; increase
D. increase; increase
Answer: D
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A firm that maximizes profits also
A) is inefficient. B) cuts corners in production processes so that its products are made too cheaply. C) uses the least-cost combination of resources. D) pays input prices lower than other firms do.
An increase in the wage rate will cause the labor supply curve to shift to the right
a. True b. False
When one country can produce a given amount of a good using fewer inputs than any other country,
A. Specialization will definitely increase worldwide production possibilities. B. It has an absolute advantage in producing the good. C. It always has a comparative advantage in producing the good. D. Specialization will definitely increase worldwide consumption possibilities.
The savings and loan crisis during the 1980s was due in large part to ______.
a. a sharp rise in interest rates making loans issued in the 1970s unprofitable b. consumer fears about bank failures and a resulting cascade of bank runs c. a lack of effective government-supported insurance on savings and loan deposits d. increased government regulation of savings and loans institutions