Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
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According to the health care life cycle, in the absence of government or employer-sponsored health coverage, workers in middle age would
A. have fewer out-of-pocket medical expenses than when they were young. B. stop paying for the catastrophic care insurance they purchased when they were young. C. save an enormous amount of money to pay for health expenses in old age. D. use the money that they saved when they were young to pay for routine medical expenses.
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. Weekly total revenue is
A. $1,600. B. $2,000. C. $3,600. D. $5,400.
The unemployment rate equals
A. (labor force - employed)/labor force. B. (employed - unemployed)/labor force. C. labor force/population. D. unemployed/employed.
Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. Along AE1, ________ when aggregate output equals $2,000 billion.
A. leakages = zero B. leakages < injections C. leakages = injections D. leakages > injections