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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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Public finance is the subdiscipline of economics that studies the various ways in which
A. governments may regulate and promote the stability of the financial sector. B. firms in the financial sector provide services to households and firms. C. governments raise and expend money. D. the general public acquires financing for their purchases.
By 1860, over one-half of all Southern farms utilized slave labor
Indicate whether the statement is true or false
Which of the following will occur when an economy's price level increases?
A) Aggregate demand will increase. B) The purchasing power of money will increase. C) The purchasing power of money will decrease. D) The real value of wealth will increase.
Which of the following statements is FALSE?
A) A perfectly inelastic supply curve is a vertical line. B) Time is an important consideration in determining supply elasticity. C) Price elasticity of supply can never equal 1. D) A horizontal supply curve is possible.