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 above figure, if the price is $8 then there is a
A) surplus of 100. B) surplus of 200. C) shortage of 100. D) shortage of 200.
Tax evasion is legal, but tax avoidance is illegal
a. True b. False Indicate whether the statement is true or false
A good that is not scarce
A. is not in demand. B. would have a vertical supply curve over the relevant range. C. would have a zero price. D. would have an infinite price.
Economic losses are a signal to producers
A. That consumer demand is being satisfied. B. That they are not using resources in the best way. C. That consumers are content with the allocation of resources. D. That they are using resources in the most efficient way.