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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A price-discriminating monopolist will equate
A) price and marginal cost in each market. B) price and marginal revenue in each market. C) marginal revenue and marginal cost in each market. D) average revenue and marginal revenue in each market.
A firm is considering an investment that will cost $2 million today and $2 million a year from now. It will generate revenues of $1 million a year for five years, beginning two years from now. If the interest rate is 10 percent, the firm should
A) not make the investment because the present value of the net revenues is less than the present value of the investment spending. B) not make the investment because the present value of the net revenues is less than $4 million. C) make the investment because the present value of the net revenues is greater than the present value of the investment. D) make the investment because the project will generate a net profit of $1 million.
Just as the aggregate-demand curve slopes downward only in the short run, the trade-off between inflation and unemployment holds only in the long run
a. True b. False Indicate whether the statement is true or false
Valeria is a closed economy, where consumption totals $3 billion, tax payments are $300 million, government spending is $1 billion, and GDP is $5 billion. Private saving amounts to
a. $1.7 billion and Valeria's government runs a budget deficit. b. $1.7 billion and Valeria's government runs a budget surplus. c. $1 billion and Valeria's government runs a budget deficit. d. $1 billion and Valeria's government runs a budget surplus