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

Economics

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Use the figure below: If good skiing costs $100 per day and horseback riding costs $50 per day, if you have $250 to spend how many days of skiing could you do?

A. 1 day B. 2 days C. 3 days D. 0 days

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Which of the following statements about checking deposits is true?

A) It is a liability for both households and banks. B) It is an asset for both households and banks. C) It is an asset for households but a liability for a bank. D) It is a liability for households but an asset for a bank.

Economics

Which of the following would lead to an increase in aggregate demand?

a. an increase in consumer confidence b. a decrease in the overall price level c. an increase in input prices d. all of the above

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Which of the following statements best describes structural economic change?

a. Fiscal policy can increase overall demand, but the process of structural economic change happens more rapidly. b. Fiscal policy can increase overall demand, but the process of structural economic change inevitably takes time. c. Fiscal policy can determine the rate at which structural economic change occurs. d. Fiscal policy can increase both overall demand and create structural economic change simultaneously.

Economics