In a(n) __________ insurance policy, there is no savings component

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.

Firms may react to a payroll tax by

A. hiring more labor. B. reducing their output. C. shifting to less capital intensive techniques. D. substituting labor for capital.