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 is currently along isocost CD. If the price of capital is $25, then the price of labor is
A. $1.
B. $25.
C. $80.
D. indeterminate from the information given.
Answer: B
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The consumption function shows how much
A) households plan to consume per year at each possible interest rate. B) real disposable income people will earn at each income tax bracket. C) households plan to consume per year at each level of real disposable income. D) households plan to consume per year at each level of savings.
An externality occurs when
A) the costs of producing a good are paid entirely by the producer. B) some of the costs of producing a good are paid by someone other than the producer. C) the marginal social cost of an activity increases as that activity is increased. D) Both answers A and C are correct.
What is true about the following payoff matrix? A: not cooperateA: cooperateB: do not cooperateA: 2, B: 2A: 1, B: 3B: cooperateA: 3, B: 1A: 0, B: 0
A. Only player A has a dominant strategy. B. Only player B has a dominant strategy. C. Both player A and player B have dominant strategies. D. Neither player A nor player B has a dominant strategy.
Consumer surplus:
A. is minimized in market equilibrium. B. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. C. measures the value between the price consumers are willing to pay for a product and the price they actually pay. D. measures the price at which sellers extract excess profits from consumers.