It is likely that ________ has an income elasticity less than 1, and ________ have an income elasticity more than 1.

The table above presents the production possibilities frontier for a nation. Using the information in the table, when moving from possibility A to B to C to ultimately E, the cost of a unit of capital goods in terms of consumption goods

A) decreases. B) increases. C) remains the same. D) decreases from possibility A to C, and then increases from possibility C to D. E) cannot be calculated.

Which of the following will lead to a change in the opportunity cost of buying a pen and a pencil?

A) An increase in the consumer's income B) A decrease in the consumer's income C) A twofold increase in the prices of both pens and pencils D) A twofold increase in the price of pens and a threefold increase in the price of pencils