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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According to Keynes, if private sector demand is insufficient to maintain full employment, the government should: a. make the economy's natural transition to a lower level of employment as easy as possible. b. shock the economy with an increase in aggregate demand
c. reduce aggregate supply to reduce inflation. d. print money to promote consumer spending. e. take steps to increase aggregate supply in an economy.
Which concept is best illustrated by the "prisoner's dilemma"?
a. product standardization b. interaction c. profit maximization d. marginal analysis e. average total cost
If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient
a. True b. False Indicate whether the statement is true or false
Consumer surplus is the cumulative difference between:
A. consumers' incomes and consumers' expenditures. B. the suggested retail price and the price consumers actually pay. C. the amount consumers are willing to pay and the price they actually pay. D. consumers' savings and consumers' expenditures.