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 A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions.
B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions.
C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions.
D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Answer: C
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When the market for a good is a natural monopoly, this results in a. improved product choice for consumers
b. many producers charging low prices for the good. c. dominance by a single producer of the good. d. increased entry by new producers of the good.
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ________ per day.
A. $2,000 B. $5,000 C. $6,000 D. $500
The modern view of the Phillips curve suggests that:
A. when inflation is reduced, unemployment will fall below the natural rate. B. the Phillips curve is an unstable relationship. C. systematic demand stimulus policies will be unable to affect prices in the long run. D. there will be a trade-off between inflation and unemployment in the long run.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.