The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?
A) 0.5 cell phones
B) 2 cell phones
C) 0.5 million cell phones
D) 2 million cell phones
E) zero
A
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The textbook refers to the following quotation from a Federal Reserve publication:
"Trade is a win-win situation for all countries that participate." But many firms and workers oppose free-trade policies and protests against globalization have become a regular occurrence at meetings of the World Trade Organization. If trade is a "win-win" situation, why is there strong opposition to free trade and globalization?
New classical economists advocate less government intervention than the new Keynesian school of thought
a. True b. False Indicate whether the statement is true or false
Since firms in both monopolistic competition and perfect competition earn zero economic profit, price must be equal to average cost for both types of firms.
Answer the following statement true (T) or false (F)
If butter and margarine are substitute goods, an increase in the price of butter is most likely to:?