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 CE. If the price of labor is $24, then the price of labor is
A. $16.
B. $24.
C. $36.
D. $80.
Answer: C
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A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5 . The firm can sell the 100th unit for $4.75 . The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses)
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D3, then a profit-maximizing firm will produce ________ units and earn ________.
A. 12; negative profits B. 13; exactly a normal return C. 15; positive profits D. 9; positive profits
Answer the following statement true (T) or false (F)
1) The adverse selection problem is the tendency for insured drivers to drive recklessly. 2) The moral hazard problem is the tendency of some parties to a contract to alter their behavior as a result of the contract in ways that are costly to the other party. 3) Professor Gullible agreed to cancel the final examination if students promised to study for it anyway. The concept of moral hazard would predict that it is unlikely that students will study for the exam. 4) Asymmetric information always results in adverse selection. 5) Insurance co-pays and deductibles are methods used by insurance companies to reduce moral hazard.
Suppose the United States' imports substantially affect foreign incomes, and the foreign countries import from the United States. The United States' spending multiplier will exceed the spending multiplier for a comparable small open economy.
Answer the following statement true (T) or false (F)