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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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Additions to the nation's capital stock are brought about through
A) the current account surplus. B) investment. C) investment and the current account surplus. D) investment and the government budget surplus.
Which of the following affects the wage a firm is willing to pay its workers?
A. the level of payroll taxes the firm must pay B. consumer demand for the goods and/or services that the firm creates C. the productivity of workers D. the amount of fringe benefits the firm is required by law to pay E. All of the above affect the wage a firm is willing to pay its workers.
Suppose a new technology allows firms to substitute mechanical flower pickers for farm laborers. As a result, the demand curve for farm laborers will
A) become less elastic. B) become more elastic. C) shift to the right. D) not be affected.
An increase in personal income taxes would shift AD to the ________.
A. left because C will decrease B. right because G will increase C. left because G will decrease D. right because C will increase