Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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An income tax system where higher tax rates are applied to increased amounts of income is called:
A) a regressive tax system. B) a proportional tax system. C) a progressive tax system. D) a flat rate tax system.
Supplier power tends to be low when
a. Suppliers are less concentrated b. Inputs provided by the supplier are not vital c. Inputs are homogenous d. All the above
The practice of charging different prices to different consumers of the same product is called
a. monopolistic pricing b. unit pricing c. price discrimination d. elasticity pricing e. marginal cost pricing
In the calculation of the CPI, books are given greater weight than magazines if
a. consumers buy more books than magazines. b. the price of books is higher than the price of magazines. c. it costs more to produce books than it costs to produce magazines. d. books are more readily available than magazines to the typical consumer.