The Figure Given Below Represents the PPC in Two Nations

question 45

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:

• A)the demand for movie rentals would increase.
• B)the quantity demanded of movie rentals would decrease.
• C)the quantity demanded of movie rentals would increase.
• D)the demand for movie rentals would decrease.
• E)the quantity demanded of movie rentals would not change.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of production or service activity.

Sales Commission

A payment made to salespersons, often calculated as a percentage of the sales they generate.

Overtime Charges

Additional wages paid to employees for hours worked beyond the standard workweek.

Accounting Numbers

Quantitative data concerning financial transactions, reflecting a company's financial performance and position.