A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420A change from combination C to B means that
A. 8 cupcakes were given up to make 2 pies.
B. 2 pies were given up to make 20 cupcakes.
C. 8 cupcakes were given up to make 1 pie.
D. 6 pies were given up to make 20 cupcakes.
Answer: A
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The functions of money are to serve as a
A. resource allocator, a method for accounting, and a means of income distribution. B. determinant of consumption, investment, and government spending. C. unit of account, a store of value, and a medium of exchange. D. factor of production, exchange, and aggregate supply.
In order to enjoy a rising standard of living standard, a nation's capital stock must grow faster than
a. the rate of depreciation b. the rate of inflation c. its population d. its financial assets e. its overall rate of economic growth
Which of the following increases in response to the interest-rate effect from a decrease in the price level?
a) investment but not consumption b) consumption but not investment c) neither investment nor consumption d) both investment and consumption
Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. If the insurance companies set the price equal to their average cost per customer, what is the insurance companies' average cost per customer ($Y)?
A. $4,000 B. $3,400 C. $2,800 D. $2,000