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 B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
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The Coase theorem says that, if the appropriate property right is assigned to __________, an efficient solution to an externality problem will be achieved
a. the party causing the externality b. the victim of the externality c. the party that can avoid the externality at the higher cost d. the party that can avoid the externality at the lower cost e. either one of the parties involved
Retired individuals:
a. Are always harmed by inflation. b. Are almost always helped by inflation. c. Are helped by inflation when it is unexpected. d. Are harmed by inflation when it is expected. e. Could be helped by inflation if their spending patterns are not like the average consumer.
In a perfectly competitive market, if one seller chooses to charge a price for its good that is slightly higher than the market price, then it will _________.
A. lose all or almost all of its customers. B. see no change in its number of customers. C. see a small decrease in its numbers of customers. D. All of the above are equally likely.
Income in the form of goods and services is
A. not considered income by economists. B. known as income in kind. C. not part of wealth. D. known as money income.