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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars

If the government provides free schooling for all students, an economist would say education is

a. a free good, having no cost. b. scarce even though its cost is paid by taxpayers rather than by students. c. an example of a good that is no longer scarce. d. all of the above.

Refer to the market for loanable funds, as shown in the above graph. A decline in the interest rate is likely to:

A. Lower capital investment B. Increase the quantity of loanable funds demanded C. Come about when there is a shortage of loanable funds D. Result from an increase in the desire of firms to borrow funds