Consider the production possibilities frontier in the figure shown. The opportunity cost of cars when moving from point B to point C:
A. is greater than the opportunity cost of cars when moving from point A to point B.
B. is less than the opportunity cost of cars when moving from point A to point B.
C. is greater than the opportunity cost of cars when moving between any other two points.
D. there is no opportunity cost when we move from B to C.
A. is greater than the opportunity cost of cars when moving from point A to point B.
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According to the Gordon-Growth model, what will be the percentage change in the value of a stock of a company whose current dividend is $10.00 and whose dividends had been expected to grow by 3% but now are expected to grow by 4% per year?
A) 4.0% B) 17.8% C) 25.0% D) 33.3%
Which of the following correctly explains why sellers in a perfectly competitive market are price takers?
a. There are few sellers, and so they have the power to take whatever price they want. b. There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process. c. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. d. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and Px = $5, Py = $10, X = 20, and M = 500?
A. 25 B. 40 C. 50 D. 75
Savings is negative below a disposable income of ____________.
