Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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Agriculture in Argentina became more efficient when ____ were introduced
A) subsidies. B) property rights. C) tariffs. D) regulations
Total planned expenditures in a closed economy are equal to
A. investment + saving + transfers. B. consumption + savings + transfers + investment. C. consumption + investment + government expenditures. D. saving + investment + government expenditures.
The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following reasons?
A. It spawned a global trade war B. It triggered the Great Depression C. It favored imports over domestic producers D. It is a classic example of the dumping argument
If the economy has a natural unemployment rate of 4 percent and potential GDP of $5 trillion, what will be real GDP according to Okun's Law if the unemployment rate rises to 5 percent?
What will be an ideal response?