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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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In the short run
A) all inputs are variable. B) all firms experience increasing returns to scale. C) some firms experience economies of scale. D) no firm experiences economies of scale.
An itemized account of a nation's foreign economic transactions is its:
a. gross domestic product. b. goods exports. c. goods imports. d. balance of payments. e. foreign exchange reserves.
For a government, the appropriate Keynesian response to a recessionary gap is to increase government spending
a. True b. False Indicate whether the statement is true or false
Which of the following situations will result from a fall in the price level in the economy?
a. Consumption expenditure increases because of increase in purchasing power b. U.S. exports become less affordable to people in foreign countries c. Real GDP demanded decreases d. Government expenditure decreases at each income level