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
You might also like to view...
Describe the major costs of inflation, being sure to distinguish between anticipated and unanticipated inflation
What will be an ideal response?
Availability of Substitutes
What will be an ideal response?
As part of recent cutbacks, Paul just accepted a 10% cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, we can say home-brewed coffee:
A. and Starbucks coffee are -normal goods for Paul. B. will become a normal good for Paul over time. C. is an inferior good, while Starbucks coffee is a normal good for Paul. D. is a normal good, and Starbucks coffee is an inferior good for Paul.
Some policymakers claim that raising the minimum wage will result in economic growth. If increasing the minimum wage would actually generate economic growth, we would expect to eventually see nominal wages ________ and unemployment ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall