Refer to the diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:





A. cannot be achieved because resources are fully employed.

B. will cost 1 unit of computers.

C. will cost 2 units of computers.

D. will cause some resources to become unemployed.

Ans: B. will cost 1 unit of computers.

Economics

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Suppose that the demand for artichokes (Qa) is given as: Qa = 200 - 4P. What is the price elasticity of demand if the price of artichokes is $10?

What will be an ideal response?

Economics

Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under

A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.

Economics