In the above figure, curve b shows the
A) bottles of soda that people are willing to forgo to get another bicycle.
B) bottles of soda that people must forgo to get another bicycle.
C) benefits of producing more bicycles is greater than the benefits of producing more soda.
D) benefits of producing more soda is greater than the benefits of producing more bicycles.
A
You might also like to view...
Diminishing marginal utility is best illustrated by which of the following statements?
a. A decrease in the price of hot dogs will cause consumers to buy more hot dogs, because the lowered price has increased their effective real income. b. A person will receive less satisfaction from consuming four hot dogs than from consuming three hot dogs. c. A person will receive less added satisfaction from consuming a fourth hot dog in a week than from consuming the third hot dog in a week. d. If the price of hot dogs declines, people's tastes for hot dogs will increase.
Most economists believe that the CPI
a. accurately measures the inflation rate b. accurately measures the inflation rate except during years when there are major economic shocks like the Arab oil embargo c. slightly underestimates the inflation rate d. seriously underestimates the inflation rate e. overstates the inflation rate