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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
You might also like to view...
In the above figure, a price ceiling of $2 would
A) create a shortage. B) create a surplus. C) have no effect. D) cause the demand curve to shift leftward.
A reduction in the demand for labor will cause wages to:
A. decrease and employment to increase. B. increase and employment to decrease. C. decrease and employment to decrease. D. increase and employment to increase.
An example of an entrepreneur would be
A. the owner of a Mexican restaurant. B. the cashier at your local supermarket. C. the cafeteria employee who won the employee of the month award. D. a local bus driver.
When an economy faces an inverted yield curve, compared to short-term bonds, the long-term bonds:
A. are riskier. B. are a safe investment. C. pay higher interest rates. D. pay lower interest rates.