Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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Refer to Figure 34-7. If the economy is at point b, a policy to restore full employment would be
a. an increase in the money supply. b. a decrease in government purchases. c. an increase in taxes. d. All of the above are correct.
The presence of union wages leads to
A) a fall in the real wage rate as more people are hired. B) less job search as more workers are hired. C) job rationing because the real wage exceeds the equilibrium real wage. D) a fall in the real wage rate as fewer people are hired. E) lower unemployment because workers do not want to lose the high union wage they are being paid.
The value of the consumer price index increased from 140 to 147 during 2006 . Nathan opened a bank account at the beginning of 2006, and at the end of 2006 his account balance was $12,840 . The purchasing power of Nathan's account increased by 2 percent during the year. We can conclude that Nathan opened his account with a deposit of $11,500 at the beginning of 2006
a. True b. False Indicate whether the statement is true or false
The price at which a monopolistically competitive firm sells its product:
A. produces economic profits in both the long run and the short run. B. exceeds the marginal cost of production. C. is less than the marginal cost of production. D. equals the marginal cost of production.