Use the information provided in Table 7.2 below to answer the question(s) that follow. 
 Table 7.2Inputs Required to Produce a Product Using Alternative TechnologiesRefer to Table 7.2. If the hourly price of capital is $30 and the hourly wage rate is $5, which production technology should be selected?

Which of the following is not true about government taxation?

a. It is an indirect way to shift resources. b. It is free of opportunity costs. c. Taxes are levied on both citizens and businesses. d. Taxes are unequally levied among citizens. e. Taxes are a tool for debt reduction.

Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?

A) Real GDP falls and the price level necessarily rises. B) Real GDP rises and the effect on the price level cannot be determined. C) Real GDP rises and the price level necessarily falls. D) Real GDP falls and the effect on the price level cannot be determined. E) Real GDP rises and the price level necessarily rises.