Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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If real GDP is less than potential GDP, then the money wage rate ________, and aggregate supply ________ so that the price level ________
A) rises; decreases; rises B) does not change; increases; falls C) falls; decreases; rises D) rises; increases; falls E) falls; increases; falls
The above figure shows the payoff for two firms, A and B, that must each choose to sell either at a high or low price. Determine the dominant strategies for each firm (if any) and the Nash equilibria (if any)
What will be an ideal response?
A monopolistically competitive firm faces a relatively-elastic demand curve as compared to a monopolist firm because of the:
a. presence of a large number of buyers and barriers to entry. b. presence of a large number of firms and easy entry into the market. c. production of perfectly homogeneous products. d. production of unique products and the presence of barriers to entry. e. production of goods that are perfect complements of each other.
Economists use the term inflation to describe a situation in which the economy's overall production level is rising
a. True b. False Indicate whether the statement is true or false