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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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The Depository Institutions Deregulation and Monetary Control Act of 1980
A) separated investment banks and commercial banks. B) restricted the use of ATS accounts. C) imposed restrictive usury ceilings on large agricultural loans. D) increased deposit insurance from $40,000 to $100,000.
The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic. e. inelastic.
Cyclical unemployment is primarily caused by:
a. a large proportion of youthful workers in the labor force. b. fluctuations in aggregate demand. c. a lack of training on the part of job seekers. d. the failure of job seekers to search adequately for the available jobs.
Exhibit 9-6 Keynesian aggregate expenditure model when the MPC is 2/3
?
The economy shown in Exhibit 9-6 has a recessionary gap of:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $5 trillion.