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 B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
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A market failure occurs when:
a. the market outcome is viewed as unfair by a majority of consumers. b. a market fails to provide the good at a zero price. c. quantity demanded exceeds quantity supplied. d. the market outcome is not the socially efficient outcome. e. prices are determined by the interaction of the forces of demand and supply and not through central planning.
Describe the costs of water pollution
What will be an ideal response?
More than 70 percent of national income can be attributed to:
a. compensation of employees. b. rental income. c. corporate profit. d. net interest. e. proprietors' income.
If the world price of a good is lower than its domestic equilibrium price, the country will:
a. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. b. export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically. c. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers. d. export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically. e. import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.