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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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In sequential games, an especially important part of strategic behavior is to:
A. "think backward, work forward." B. "think forward, work backward." C. "think forward, act backward." D. "think backward, act forward."
The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good increases. d. the supply of the good decreases.
When choosing how much money they wish to hold in their financial portfolios, people trade off money's advantage of liquidity against the opportunity cost of holding money rather than other financial assets
a. True b. False Indicate whether the statement is true or false
Which of the following is true? a. When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A. b. When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B. c. Capital flows will tend to increase real interest rates in countries with a capital inflow
d. Both b. and c. are correct.