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 B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,

A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.


Answer: A

Economics

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For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is

A. people in the oil industry deserved the transfer. B. conservation. C. one cannot be dependent on foreign supplies of so crucial a resource. D. American oil was of higher quality and deserved a higher price.

Economics

________ and ________ are the largest sources of revenue collected by the federal government

A) Individual income taxes; corporate income taxes B) Individual income taxes; social insurance taxes C) Excise and other taxes; individual income taxes D) Corporate income taxes; excise and other taxes

Economics

On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 0.75 euros. Therefore, one euro would have purchased about ________ U.S. dollars

A) 0.75 B) 1.00 C) 1.33 D) 1.75

Economics

The stock of unused goods held by a firm is called a(n):

a. depreciation. b. supplement. c. deadweight loss. d. excess capacity. e. inventory.

Economics