Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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People will want to buy fewer bonds and the interest rate will rise, as the price level
a) falls by more than 50 percent. b) falls by less than 50 percent. c) remains constant. d) rises.
Both an NBA basketball player and a fast-food cook are going to graduate school. Who has a higher opportunity cost? Explain
What will be an ideal response?
The key explanation for the prevalence of waterway pollution is
a. the inclusion in production of all costs involving use of the waterway. b. that there are private costs but no costs to society. c. that waterways are not private property and can be used free of charge. d. that waterways are subject to the market's normal control procedures.
Which of the following will increase economic freedom?
a. low rates of inflation and easy access to money that maintains its purchasing power b. high tariff rates c. government spending that comprises a large share of the economy d. rapid and unpredictable inflation