Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is
A. A.
B. B.
C. C.
D. D.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good. 2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good. 3. Social costs are equal to the costs imposed on others. 4. Social costs are felt by consumers but not by manufacturers. 5. All cars contribute positively to social gains.
Monique buys a new television for $795. She receives consumer surplus of $355 from the purchase. How much does Monique value her television?
A) $355 B) $440 C) $795 D) $1150
Consider a portfolio that consists of all of the risky assets in the economy, held in proportion to their existing quantities. This portfolio is
a. a risk-free asset. b. the only asset that a risk-averse investor chooses to hold. c. a market portfolio. d. in the center of the set of all risky assets.
The movie "Return of the Jedi" earned $264 million in 1983 when it was released. The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665. Approximately how much did the movie earn in 2012 dollars?
A) $590 million B) $612 million C) $2.12 million D) $123 million E) $150 million