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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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The "shoe-leather" cost of a fully anticipated inflation is
A) the inconvenience of holding less cash. B) the higher prices of imported raw materials due to currency depreciation. C) the extra time spent on shopping in order to beat price increases. D) the effort of changing posted prices on price tags and producing new price lists and catalogs.
In _________ each person makes concessions giving in a little in order to gain a valued settlement or outcome such as harmony
a. Assimilation b. Compromise c. Valuation d. Socialization
The government just approved a bill allocating twenty million dollars to hire teachers specifically to work with students in low-income neighborhoods. This action answered which basic economic question?
a. Who will get the goods and services? b. How will the goods and services be produced? c. What is the best method of production? d. What goods and services will be produced?
Suppose this is the base year and there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If the Price of Good A is $5 and the Price of Good B is $10, the price index
A. is 30. B. is 20. C. is 50. D. is 100.