The price-consumption curve:
a. connects the various combinations of two goods as a consumer's income changes
b. connects the various combinations of two goods as the relative price of one good changes.
c. shows the quantity of a good consumed as a function on income.
d. All of the above are correct statements.
b
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In the above figure, the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is
A) 25 guitars. B) 75 ukuleles. C) 25 ukuleles. D) 50 guitars.
In the double-entry bookkeeping system used to track the economy, _____
a. the value of aggregate output equals the aggregate income paid for the resources used to produce that output b. government spending on transfer payment is recorded c. the earnings of all shareholders in the economy from the sale of shares are recorded d. inventories are counted twice, once as investment and once as output e. intermediate goods are counted twice, once as a type of output themselves and once as part of the final output