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
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Gordon is a person who sells narcotics "on the street." This type of illegal activity ________.
A. causes GDP to be overstated B. is estimated and included in GDP figures C. is excluded from GDP figures D. would be considered double counting in calculating GDP
If 12 candy bars are demanded at $0.30 each and 4 candy bars are demanded at $0.50 each, what is the elasticity of demand over the price range from $0.30 to $0.50?
a. 2 b. 1.67 c. 0.5 d. 7.5 e. 0.4
GDP excludes: a. business purchases of investment goods, such as factories. b. government purchases of military equipment
c. the building of a new apartment complex. d. none of the above.
When a free market for a good reaches equilibrium, anyone who is willing and able to pay the market price can buy the good
a. True b. False Indicate whether the statement is true or false