Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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Which of the following is a problem with the price system that can lead to fluctuations in output?
A) The price system works silently in the background. B) Prices may be flexible. C) Prices can be slow to adjust. D) all of the above
If Bert has budget constraint A in the graph shown, what is his opportunity cost of three gallons of milk?
This graph shows three different budget constraints: A, B, and C.
A. Twelve cases of soda
B. Eight cases of soda
C. Four cases of soda
D. It is impossible to say without knowing Bert's income.
Refer to the following graph. 
The additional profit that might be achieved by monitoring a lazy monopolist with ATC (X-inefficient) is equal to the area of rectangle:
A. A minus rectangle B minus the cost of monitoring. B. A plus rectangle B minus the cost of monitoring. C. A minus the cost of monitoring. D. B minus the cost of monitoring.
Over which of the following does the Fed have some control?
a. a commercial bank based in Paris, France b. a pension fund based in Albany, New York c. a commercial bank based in Wichita, Kansas d. a pension fund based in Tokyo, Japan