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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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An economic model is a detailed version of an economic environment
Indicate whether the statement is true or false
Sam has $500 saved up for his spring break. He also carries about $300 of debt on his credit card. By choosing not to pay off his credit card with his savings, Sam is:
A. acting rationally. B. going to be poorer in the long run. C. recognizing that money is fungible. D. None of these is true.
Experimental data are sometimes called retrospective data.
Answer the following statement true (T) or false (F)
Suppose a bank has $50,000 in deposits and $6,000 in reserves. The required reserve ratio is 10%. Which of the following occurs if the required reserve ratio is increased to 12%?
A) The bank's total reserves will fall. B) The bank will now be fully loaned up. C) The bank will have insufficient required reserves. D) The bank's profit will fall.