- 50 0 10 20 30 40 50 60 70 S Butter (thousands of unita) 20. The opportunity co
ID: 1126277 • Letter: #
Question
- 50 0 10 20 30 40 50 60 70 S Butter (thousands of unita) 20. The opportunity cost of moving from point B to A in the diagram above is a 10,000 units of butter b. 20,000 units of butter c 50,000 units of guns d. The maximum amount of butter that can be produced with available resources 21 A movement from point D to B in the diagram above is A movement from an efficient point to an inefficlent point a. b. Impossible, since the economy could never have been at point D in the first place A movement from an inefficient point to another efficient point d. A movement from an inefficient point to another inefficient point 22. If the price of a good rises above the equilibrium price, there will be a a Surplus and inventories will rise b. Surplus and inventories will fall c. Shortage and inventories will rise d. Shortage and inventories will fa 23. The law of demand states that a. As the price of a good rises, more units are demanded There is a direct relationship between the price of the good and the quantity produced c. There is a negative relationship between the price of a good and the quantity of the good d. There is an increase in the need for a good as the price of the good increases 24. in the free marketplace a. Surpluses and shortages can both persist and never be eliminated b. Surpluses can last for a long time, but shortages disappear relatively quickly c. shortages can last for long time, but surpluses disappear relatively quickly d. Neither surpluses nor shortages can persist 25. If supply increases and demand decreases, then the equilibrium a. Price will def itely fall b. Price will definitely rise e Quantity will definitely fa d Quantity will definitely riseExplanation / Answer
20.Ans: 20,000 units of butter
Explanation:
When the firm moves from point B to point A, 20,000 more units of guns are produced at the cost of 20,000 units of butter.
21. Ans: Impossible, since the economy could never have been at point D in the first place.
22. Ans: Surplus and inventories will rise
23. Ans: There is a negative relationship between the price of a good and the quantity of the good demanded.
24. Ans: Neither surpluses nor shortages persists.
25. Ans: price will definitely fall
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