In the above figure, which of the following is TRUE regarding the movements from point A to B and from point C to D?
I) The movement from point A to B shows that the economy has chosen to produce 100 more jets.
II) The movement from point C to D shows that the economy has chosen to produce 100 more jets.
III) The movement from point A to B and from point C to D have the same opportunity cost.
A) I and II
B) I and III
C) II and III
D) I, II and III
A
You might also like to view...
The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today
A) present value B) future value C) interest D) deflation
Supplier power tends to be low when
a. Suppliers are less concentrated b. Inputs provided by the supplier are not vital c. Inputs are less differentiated d. All the above
A government policy that prevents the price of a good or service from falling below a specified level is called a price floor and usually results in
a. a shortage. b. a surplus. c. a black market. d. fewer producers of the good or service. e. a decrease in demand.
Suppose the Fed sells a $50,000 U.S. Treasury security to Martha, a member of the public. If Martha writes a check to the Fed in order to buy this security, the money in her checking account will be transferred to
A) the Fed, and now the Fed will have $50,000 more in reserves than it had before. B) her bank, and now her bank will have $50,000 more in reserves than it had before. C) the Fed, and now it is as if the money doesn't exist. D) the Treasury, and now the Treasury will have $50,000 more in reserves than it had before.