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 slope of isocost AB is
A. greater than the slope of isocost CD.
B. less than the slope of isocost CD.
C. equal to the slope of isocost CD.
D. indeterminate from this information, as the prices of capital and labor are not given.
Answer: C
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Which of the following is an example of a negative externality (additional social cost)?
A. an increase in the value of land you own when a nearby development is completed B. the costs paid by a company to build an automated factory C. the higher price you pay when you buy a heavily advertised product D. falling property values in a neighborhood where a disreputable nightclub is operating
Shortly after their admission into the EMU, Ireland and the Netherlands
A) both seceded from the EMU. B) were expelled due to high levels of debt. C) breached the inflation convergence criterion that had qualified them for admission to the EMU in the first place. D) achieved inflation rates of zero percent. E) abandoned the Euro as their national currency.
Refer to the above figure. Suppose this industry was perfectly competitive and then merged into one monopolistic firm. The monopoly would
A) raise price from P1 to P2. B) reduce output from Q3 to Q1. C) reduce output from Q2 to Q1 and raise price from P3 to P4. D) raise price from P1 to P4.
When the long-run aggregate supply curve shifts right, it represents:
A. economic growth. B. pushing our economy beyond normal capacity. C. an unemployment rate of zero. D. negative inflation.