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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All of the following are true regarding tacit collusion except which one?
A) It is more likely when barriers to entry are high. B) It is more likely when the price elasticity of demand is large. C) It is an informal, unstated agreement. D) It harms buyers.
System in which an agency such as a government determines everyone's share.
a. price floor b. price ceiling c. deficiency payment d. rationing
The economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation?
a. National income abroad has increaseda b. Interest rates and wage rates have decreased c. Consumer incomes and the quantity of labor have decreased d. The prices of imported resources have increased
Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:
A. the last unit produced and the firm earns zero profit. B. each unit produced and the firm earns zero profit. C. the last unit produced and the firm suffers a loss unless the government gives the firm a subsidy. D. the profit-maximization unit and the firm earns an economic profit.