When a particular resource is commonly used, it tends to get underutilized
a. True
b. False
Indicate whether the statement is true or false
False
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In the long run, output is determined solely by the supply of capital and the supply of labor, not the price level
Indicate whether the statement is true or false
If the production of a particular good involves significant external costs, to force the externality to be internalized the government might:
a. impose a tax on production of the good in order to increase production. b. impose a tax on production of the good in order to decrease production. c. offer a subsidy for production of the good in order to increase production. d. offer a subsidy for production of the good in order to decrease production.
Assume a toy company hires an additional worker to assemble toys, and the size of the factory and amount of equipment remain constant. As a result, the level of output increases but by a smaller amount than when the previous additional worker was hired. This is an example of:
a) The law of substitution. b) Say's Law. c) The law of diminishing returns. d) The law of poor planning.
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.