At the XYZ Co, a unit of capital costs three times as much as a unit of labor. If MPK = 10, MPL = 5, then this firm
A) is minimizing its cost at current output level.
B) should use more capital and less labor to raise output at current cost.
C) should use less capital and more labor to raise output at current cost.
D) None of above.
C
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Which of the following indifference curves maximizes utility or satisfaction given the consumer's budget line for sodas and cookies? 
A. U1 B. U2 C. U3 D. U4
Under most circumstances, the application of taxes on goods will only affect who gets the goods
Indicate whether the statement is true or false
Based on the diagram, if potential output equals 5,000 and the real interest rate is 1 percent, then there is ________ gap and the Fed must ________ the real interest rate so that output will equal potential output. 
A. an expansionary; raise B. an expansionary; reduce C. a recessionary; raise D. a recessionary; reduce
Two nations have the following production capacity given their endowment of resources. Country A can produce 40 units of beer or 90 units of pizzas. Country B can produce 120 units of beer or 70 units of pizzas. Which of the following statements is most appropriate to decide how these countries should specialize?
A. Country B has an absolute advantage in both products. B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer. C. Country A has no comparative advantage and country B has a comparative advantage in beer. D. Country A has a comparative advantage in beer and country B has a comparative advantage in pizzas.