Refer to the diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A. cannot be achieved because resources are fully employed.
B. will cost 1 unit of computers.
C. will cost 2 units of computers.
D. will cause some resources to become unemployed.
Ans: B. will cost 1 unit of computers.
You might also like to view...
Durbin's alternative test is valid even if the explanatory variables are strictly exogenous.
Answer the following statement true (T) or false (F)
When quantity supplied equals quantity demanded,
A. there is disequilibrium. B. the market is cleared. C. there is excess quantity demanded. D. there is excess quantity supplied.
Which of the following statements is TRUE?
A) The long-run aggregate supply curve is vertical. B) The short-run aggregate supply curve is vertical. C) The long-run aggregate demand curve is upward sloping. D) The long-run aggregate supply curve is upward sloping.
Excess quantity demanded for a good creates pressure to push the price of that good down toward the equilibrium price
a. True b. False Indicate whether the statement is true or false