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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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Risk aversion is best explained by:
a. timidness. b. increasing marginal utility of wealth. c. constant marginal utility of wealth. d. decreasing marginal utility of wealth.
Accounting profits are calculated as:
A. total revenue minus implicit costs. B. total revenue minus explicit costs. C. total revenue minus all opportunity costs, explicit and implicit. D. None of these is true.
The rule of 72 implies that a country with a growth rate of 2 percent:
A. will double its income in about 7 years. B. will double its income in about 36 years. C. will double its income in about 50 years. D. will never double its income.
The word "monopolistic" in the label "monopolistic competition" refers to the fact that:
A. there is only one firm producing in the market. B. firms have no control over the price they charge. C. each firm produces a slightly different version of the product. D. None of these