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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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Par value is the
A. Increase in the market value of an asset. B. Amount to be repaid when the bond is due. C. Rate of interest to be paid on a bond. D. Same as the risk premium on a bond.
Which of the following occurs if government intervention forces the economy inside the production possibilities curve?
A. Income inequality. B. Market failure. C. Government failure. D. Externalities.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
Which of the following legal creations is imperative to creating profits for prescription drug companies?
A. Patents B. Copyrights C. Corporations D. Trademarks