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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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Nontradables are goods or services that:
A. can't be taken from place to place very easily or at all. B. are cultural specific and not typically traded for that reason. C. can’t legally cross a country's borders. D. are not allowed to leave a country.
Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately
a. 10 percent b. 12 percent c. 17 percent d. 20 percent e. 25 percent
Which of the following is NOT counted as an economic resource?
a. Mental abilities of labor. b. Money supply. c. Entrepreneurship. d. Physical labor. e. All of the above are included.
If the market for butter is perfectly competitive, then the demand curve facing a firm that produces butter will be:
A. perfectly inelastic. B. perfectly elastic. C. unit elastic. D. upward sloping.