Consider the production possibilities frontier in the figure shown. The opportunity cost of moving from point A to point B is:
A. 5 cars per cigar.
B. 10 cars per cigar.
C. 5 cigars per car.
D. 10 cigars per car.
C. 5 cigars per car.
Economics
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If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
A) 0.9. B) 0.8. C) 0.75. D) 0.6.
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If the total revenue curve lies completely below the total cost curve, economic profit is zero
a. True b. False
Economics
Actual investment equals intended investment only when the economy is in macroequilibrium
Indicate whether the statement is true or false
Economics
When a monopolist increases the quantity that it sells, price decreases, which, all else equal, decreases total revenue; this is called the price effect
a. True b. False Indicate whether the statement is true or false
Economics