Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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Unlike private placements, publicly-sold securities lack
A) any kind of statement of the financial condition of the borrower. B) a secondary market. C) a definite maturity date. D) restrictive covenants.
When using the money supply figures to measure the direction of monetary policy during the last several decades, it is better to look at changes in the M2 money supply rather than M1 because
a. the increase in popularity of interest-earning checking accounts in the 1980s distorted the M2 money supply but not the M1 money supply. b. the increase in popularity of interest-earning checking accounts in the 1980s distorted the M1 money supply but not the M2 money supply. c. the decrease in popularity of interest-earning checking accounts in the 1980s distorted the M1 money supply but not the M2 money supply. d. the decrease in popularity of interest-earning checking accounts in the 1980s distorted the M2 money supply but not the M1 money supply.