Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
If Moe moves from Point A to point C, his grade in Physics will go down by ________ his grade in economics.
A. less than the decrease in
B. more than the increase in
C. more than the decrease in
D. less than the increase in
Answer: D
You might also like to view...
If the reserve requirement is 20 percent and the Fed buys $10,000 worth of Treasury bonds, what is the change in the banks' total reserves?
A) $2,000 B) $20,000 C) $8,000 D) $100,000 E) $10,000
A free-rider problem occurs when the
A) good is excludable. B) good is offered at no charge. C) good is rival. D) good is nonexcludable.
When a person consumes two goods (A and B), that person's utility is maximized when the budget is allocated such that:
A) the marginal utility of A equals the marginal utility of B. B) the marginal utility of A times the price of A equals the marginal utility of B times the price of B C) the ratio of total utility of A to the price of A equals the ratio of the marginal utility of B to the price of A. D) the ratio of the marginal utility of A to the price of A equals the ratio of the marginal utility of B to the price of B.
If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?
A) Inventories will decline, and GDP and employment will decline. B) Inventories will rise, and GDP and employment will rise. C) Inventories will decline, and GDP and employment will rise. D) Inventories will rise, and GDP and employment will decline.