Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. An economy that chooses to be at Point B rather than Point A will achieve ________ in the future.
A. higher opportunity costs
B. lower employment levels
C. lower consumption levels
D. a higher economic growth rate
Answer: D
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Which of the following statements regarding OPEC is false?
A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.
If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift
A. downward by $25 billion. B. downward by $10 billion. C. upward by $25 billion. D. upward by $10 billion.
As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because
A. resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good. B. consumers would be willing to pay higher prices for the good as more of the good is produced. C. as more of a good is produced, the quality of that good declines, and therefore the costs of production increase. D. as more of a good is produced, the inputs used to produce that good will increase in price.
Refer to Scenario 7.5 below to answer the question(s) that follow.SCENARIO 7.5: You own and are the only employee of a company that customizes bicycles. Last year your total revenue was $60,000. Your costs for rent and supplies were $25,000. To start this business you invested an amount of your own capital that could pay you a $45,000 a year return.Refer to Scenario 7.5. During the year your economic costs were
A. $25,000. B. $35,000. C. $45,000. D. $70,000.