Refer to Figure 2-5. If the economy is currently producing at point X, what is the opportunity cost of moving to point W?
A) 5 million tons of paper B) 3 million tons of steel
C) 9 million tons of paper D) 19 million tons of steel
B
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Explain how present value calculations are used to evaluate future possibilities in the case of oil. Give an example using a present value calculation
What will be an ideal response?
In macroeconomics, the point at which planned aggregate expenditures equals aggregate output
A. is where saving is negative. B. is only achieved if net exports are zero. C. only occurs when the MPC is equal to the MPS. D. is the equilibrium point.
The price-elasticity of demand is always negative because of:
A. The law of demand B. Percent-changes being used in the formula C. The midpoint formula D. Scarcity
The effect of the September 11 attacks on the World Trade Center on the market for office space in downtown Manhattan was that both the equilibrium price and the equilibrium quantity fell. What is the most likely explanation for this?
A) Supply and demand both shifted left, and the magnitude of the demand shift was greater. B) Supply and demand both shifted left, and the magnitude of the supply shift was greater. C) Supply shifted left, demand shifted right, and the magnitude of the demand shift was greater. D) Supply shifted left, demand shifted right, and the magnitude of the supply shift was greater.