Refer to the information provided in Figure 7.7 below to answer the question(s) that follow. Figure 7.7Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant A to isoquant B, the number of roller skates produced
A. remains constant, but input prices have risen.
B. remains constant, but Roller Skates Unlimited uses more capital and more labor.
C. increases.
D. decreases.
Answer: C
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a. The money supply of a foreign nation increases. b. Oxfam America, a U.S. relief agency, sends food to drought victims in sub-Saharan Africa. c. Oxfam America, a U.S. relief agency, sends farm equipment to drought victims in sub-Saharan Africa. d. The Pentagon stations troops in Saudi Arabia. e. Pepsi-Cola sends its soft drink to Russia; in return, the United States gets Stolichnaya vodka. No money changes hands.