Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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Let C = 70 + 0.75y and I = 40. Assume no government or foreign sectors. Investment needs to increase by ________ to increase equilibrium output by a total of $600
A) $30 B) $150 C) $560 D) $600
In its macroeconomic equilibrium, the economy can be producing at i. below full employment. ii. full employment. iii. above full employment
A) i only B) ii only C) iii only D) i or ii E) i, ii, or iii
In markets, information about the relative value of resources is communicated through: a. government agencies. b. planning committees. c. prices
d. unions.
A production function represents the:
A. relative costs of the inputs across various modes of production. B. relationship between the quantity of inputs and the quantity of outputs. C. relationship between the cost of the inputs and the revenue generated by the outputs. D. relative values of the inputs and modes of production.