The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?
A) 500 bottles of wine
B) 2 bottles of wine
C) 1/2 of a bottle of wine
D) 1000 bottles of wine
E) None of the above answers is correct.
A
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In the figure above, if a tax is imposed that generates an efficient allocation of resources, then consumers will pay a price of
A) $250 per unit. B) $200 per unit. C) $150 per unit. D) $100 per unit.
Suppose velocity is constant at 4, real output is 10, and the price level is 2. From this initial situation, the government increases the nominal money supply to 6. If velocity and output remain unchanged, by how much will the price level increase?
A) 2.4% B) 20% C) 24% D) 50%
In the short run, a firm should shut down if its economic loss from operating exceeds its total fixed cost
a. True b. False Indicate whether the statement is true or false
As the price elasticities of supply and demand increase, the deadweight loss from a tax increases
a. True b. False Indicate whether the statement is true or false