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
You might also like to view...
In the basic Keynesian model, a decrease in government purchases:
A. reduces potential output. B. increases potential output. C. increases short-run equilibrium output. D. reduces short-run equilibrium output.
Between 2007 and 2009, which of the following occurred in the United States, but not in the United Kingdom?
A) an increase in unemployment B) a negative demand shock C) a negative rate of inflation (i.e., deflation) D) a sharp increase in financial frictions E) a negative supply shock
The smaller the percentage of voters required for collective action, the higher the external costs
a. True b. False
An economy that operates inside its production possibility curve is less efficient than it would be if it were operating on its production possibility curve.
Answer the following statement true (T) or false (F)