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

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Actual investment equals intended investment only when the economy is in macroequilibrium

Indicate whether the statement is true or false

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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