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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The following diagram shows the rate of inflation each year during a five-year span. Use this diagram to answer the next question.
How fast did prices rise in Year 2?
A. -2% B. 6% C. 4% D. 2%
In a figure showing the average total cost curve and the average variable cost curve, the vertical distance between the two curves is equal to the
A) marginal cost. B) average fixed cost. C) total fixed cost. D) total variable cost. E) average marginal cost.
In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve
A) leftward shift; demand B) movement upward along; demand C) leftward shift; supply D) movement downward along; supply
The regulatory lag:
A) always benefits the regulated firm. B) is likely to occur with rate-of-return regulation. C) promotes economic efficiency. D) all of the above