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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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Limits on the quantity or total value of specific products imported to a nation are
A. export subsidies. B. protective tariffs. C. import quotas. D. nontariff barriers.
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Indicate whether the statement is true or false
Which of the following statements is true?
a. Economic theory does not make unrealistic assumptions. b. Economists should not ignore details while focusing on complex problems. c. Abstraction forms an important part of economic analysis. d. The word theory means same for both economists and laymen.
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An appreciation of the domestic currency. b. An increase in the number of immigrants. c. An increase in the price of fuel. d. None of these answers is correct.