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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Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve decreases the money supply. The result will be a ______________ in the money market and a _________________ in the bond market, which will push bond prices _________________ and interest rates will ___________________ until a new equilibrium is reached
A) surplus; shortage; up; fall B) shortage; surplus; down; rise C) surplus; shortage; down; rise D) shortage; surplus; down; fall
Which of the following is not associated with global poverty?
A. Malnourishment. B. Lack of proper clothing. C. Low mortality rates. D. Lack of medical care.
In the shortrun (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.
a. an increase; a decrease b. a decrease; an increase c. no change; an increase d. a decrease; no change
The market economy is founded on ______.
a. voluntary exchange and the price system that guides production and distribution b. fiscal policies that include government-mandated minimum or maximum prices c. international guidelines and treaties enforced by the World Trade Organization d. a complex system of tariffs and taxes intended to fairly divide the economic pie