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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of
A) 20 years. B) 17 years. C) unlimited period. D) 100 years.
Which of the following is considered to be a cost of information?
a. The price of the commodity for which information is collected. b. The time spent to collect the information. c. The difference in price charged by different sellers for the same commodity. d. The difference in price paid by different buyers for the same commodity.
The output level for a perfect price discriminator is found where
a. MR = ATC b. MC = P c. MR = P d. TR = TC e. AR = ATC
If country A can produce more of practically everything than can country B, then which of the following statements is true?
A. Country A has no incentive to trade with country B. B. Trade can benefit both countries. C. Country B cannot have a comparative advantage in the production of any good that country A wants to buy. D. Country B has no incentive to trade with country A.