Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions.
B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions.
C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions.
D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Answer: C
You might also like to view...
What is the structure of the Federal Reserve Bank System?
What will be an ideal response?
The marginal propensity to consume describes ________
A) the tendency to consume fringe, or unusual items B) the impact of a change in spending on income C) the impact on consumption resulting from a change in income D) lifetime consumption resources
If the marginal physical product of labor increases with the addition of new workers, it's because
a. labor specialization raises labor productivity b. the new workers are hired at lower wage rates c. the law of diminishing returns applies to new workers d. the supply curve of labor is upward sloping e. of the low productivity of capital
It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve system because
a. the government will not have to repay the privately held debt. b. only the privately held debt creates a net interest liability for the federal government. c. the privately held debt does not create a net interest liability for the federal government. d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.