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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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The tool most frequently relied on by the Fed is
a. interest rate changes. b. changing the money multiplier. c. changing the discount rate. d. open market operations. e. changing the reserve ratio.
Which would have no effect on the demand for motorcycles?
a. A change in tastes b. A change in the cost of steel c. A change in the price of gas d. A change in the prices of cars
If the marginal benefits are greater than the marginal cost of an activity, then society is overallocating resources to this activity.
Answer the following statement true (T) or false (F)
The minimum wage is an example of
A) a subsidy for low-skilled workers. B) a price floor. C) a price ceiling. D) a black market.