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 E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
You might also like to view...
Suppose the economy is in a long-run equilibrium when a temporary, favorable aggregate supply shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response
In words, explain why "no response" is the best policy.
If the United States has a trade deficit with China, then China must have
A) a trade surplus with countries other than the United States. B) a trade surplus with the United States. C) a trade deficit with countries other than the United States. D) a trade deficit with the United States.
In the production possibilities framework, economic growth is depicted by the PPF
A) shifting leftward (toward the origin). B) shifting rightward (away from the origin). C) becoming a straight line rather than a bowed outward curve. D) becoming bowed outward rather than a straight line.
Which of the following is true for a monopolist?
A. It faces a perfectly elastic demand curve. B. It must lower its price on all of its units in order to sell any additional units. C. It faces many competitors. D. Its marginal revenue curve is equal to its demand curve.