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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Classical growth theory predicts
A) a slowdown in population growth over time. B) sustained increases in economic growth in the long run. C) sustained increases in the standard of living in the long run. D) real GDP per person will remain at the subsistence level over time. E) the population growth rate slows as real GDP per person rises.
Income is considered to be a
A) nontaxable stream of funds. B) flow. C) stock. D) resource.
Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force b. A deterioration in the quality of the labor force c. A decrease in the cost of using computers d. A decrease in the price level e. An increase in the price level
Anything owed by a person or a firm is
A) an asset. B) a liability. C) a bond. D) equity.