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. initially increases, then decreases.
C. increases.
D. decreases.
Answer: C
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In the figure above, suppose the government provides vouchers worth $15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity B) exceeds; below the efficient quantity C) is below; above the efficient quantity D) is below; below the efficient quantity E) equals; efficient
All of the following are possible characteristics of oligopoly except
a. free entry into the industry. b. significant economies of scale. c. interdependence among sellers. d. homogeneous product.
The intersection of the demand for loanable funds and the supply of loanable funds determines the
A. Par value. B. Real interest rate. C. Prevailing interest rate. D. Price ÷ earnings ratio.
If Tom purchases a comprehensive auto insurance policy because he knows he is a reckless driver, his behavior is an example of moral hazard.
Answer the following statement true (T) or false (F)