Refer to the diagram. The combination of computers and bicycles shown by point F:
A. is unattainable given currently available resources and technology.
B. is attainable but implies that the economy is not using all its resources.
C. is irrelevant because it is inconsistent with consumer preferences.
D. suggests that opportunity costs are constant.
Ans: B. is attainable but implies that the economy is not using all its resources.
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If all conditions for a perfectly competitive market are met
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.
According to Say's law
A) supply creates its own demand. B) demand creates supply. C) changes in supply create supply-side inflation. D) changes in demand create demand-side inflation.
Whenever the interest rate goes up, the price of bonds will go down
a. True b. False Indicate whether the statement is true or false
Which equation shows how a firm’s marginal cost can be determined by looking at changes in its variable cost?
a. ?MC/?VC b. ?q/?VC c. VC/?VC d. ?VC/?q