ANSWERS for TEST _1

ANSWERS for TEST _1 - Name:_________________ Favorite...

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Unformatted text preview: Name:_________________ Favorite Restaurant:____________ BA 315: Test #1, Winter 08 Lundquist College of Business University of Oregon Ali Emami Please answer all questions. You are allowed to use a calculator to help with the calculations on the test. Do not talk during the test or use someone elses paper or calculator as assistance this can result in a zero and a failing grade in the class. Each question is worth one point unless is stated otherwise. 1. I plan on going out to dinner this evening instead of working as a grader at $10 an hour. The meal will cost $25 and dinner will last for two hours. The total opportunity cost of going to dinner: A) Is $25. B) Depends on how good the meal is. C) Is what I could have purchased with the $45. D) Is the forgone grading work I could have done during the same time. Table 1shows the tradeoff between different combinations of night clubs and houses for homeless, ceteris paribus. Complete the table by calculating the required opportunity costs for both Houses and night clubs. Then answer the indicated question(s). Table 1 - Production possibilities for night clubs and houses for homeless Combination Number of Houses Opportunity cost of houses in terms of night clubs (night clubs per house) Number of Night Clubs Opportunity Cost of night clubs in terms of houses (Houses per night club) A 200 n/a n/a B 190 20/10=2 20 10/20=0.5 C 170 15/20=0.75 35 20/15=1.33 D 130 10/40=0.25 45 40/10=4 2. What is the highest opportunity cost anywhere in Table 1 for houses in terms of night clubs (number of nightclubs per house)? Answer: 2 3. What is the highest opportunity cost anywhere in Table 1 for nightclubs in terms of houses (number of houses per nightclub)?: Answer: 4 4. In Figure 1 (shown in next page), at what point society is experiencing the employment of some but not all available resources?...
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ANSWERS for TEST _1 - Name:_________________ Favorite...

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