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
You might also like to view...
Pete is a perfectly competitive rose grower. The above table gives quantities and the price for which Pete can sell his roses
a) What is Pete's total revenue if he sells 1 dozen roses? 2 dozen roses? 3 dozen roses? 4 dozen roses? b) What is the marginal revenue of the 2nd dozen roses sold? Of the 3rd dozen? Of the 4th dozen?
Which of the following actions might we logically expect to result from rising stock prices?
a. Jim decreases his consumption spending. b. Firms sell fewer shares of new stock. c. Firms spend more on investment. d. None of the above is correct.
Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the government revenue from a tariff of $0.50 per unit is represented by area
a.
c
b.
e + g
c.
i + e + f
d.
d + e
e.
e
If the isoquants are straight lines or L-shaped, then a cost-minimizing firm will
A) not be able to minimize costs. B) find the lowest isocost line touching the relevant isoquant. C) find the highest isocost line touching the relevant isoquant. D) choose not to produce any output.