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
You might also like to view...
Answer the following statements true (T) or false (F)
1. When a competitive firm sees losses because the product falls below the minimum average cost of production at its current plant, it may decide to expand if there are economies of scale. 2. When a competitive firm sees the price fall below the minimum possible average total cost in the long run, then it will decide that it could do better by moving to a different industry. 3. Suppose that a competitive firm finds that in its short-run equilibrium situation, its marginal cost is higher than its average total cost. If things are not expected to change and there are constant returns to scale, then the firm will exit the industry in the long run. 4. It is possible for a competitive firm that is maximizing profits in the short run to make its profits even bigger in the long run by expanding its plant. 5. In long-run equilibrium, a competitive firm produces where P = MR = MC = minimum ATC and the firm earns normal economic profits.
The consumer-side deadweight loss from a per-unit tax in the goods market arises from solely from the fact that output falls under the tax.
Answer the following statement true (T) or false (F)
The "Fisher Effect" occurs when a one-percentage-point rise in expected inflation ________ interest rate by one percentage point
A) raises the expected real B) lowers the expected real C) raises the nominal D) lowers the nominal
People choose to do something:
A. when they believe the benefits outweigh the costs of the decision. B. when they believe the costs outweigh the benefits of the decision. C. when they believe their decision cannot be questioned by anyone else. D. when they believe it won't harm anyone and will better themselves.