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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A firm's "normal profit" is best characterized by the
A) average of a firm's profits over the past five years. B) amount of profit necessary to keep the price of a firm's stock from changing. C) amount of profit a firm could earn in its next best alternative activity. D) the average amount of profit earned in the firm's industry.
In the long run, all inputs are variable
Indicate whether the statement is true or false
Jack has an MPC of 0.82 and Jill has an MPC of 0.78. Ceteris paribus, if the government transfers income from people who behave like Jack to people who behave like Jill,
A. Aggregate demand will increase. B. Aggregate demand will decrease. C. It is not possible to predict what will happen to aggregate demand. D. Aggregate demand will remain the same.
The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as ___________
Fill in the blank(s) with the appropriate word(s).