ECO550 Midterm-2 - Question 1 10 out of 10 points Utility...

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Question 1 10 out of 10 points Utility is a(n) _____ measure of wellbeing of a person. Answer Selected Answer: ordinal Correct Answer: ordinal Question 2 0 out of 10 points Since people’s incomes are limited and their abilities to borrow differ they face _____ constraints. Answer Selected Answer: psychological Correct Answer: financial Question 3 10 out of 10 points A model of choice in economics starts by assuming that: Answer
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Selected Answer: people try to maximize their utility. Correct Answer: people try to maximize their utility. Question 4 10 out of 10 points Fiona and Alicia divide their time equally between ironing shirts and cooking meals. Fiona can iron 5 shirts and cook 2 meals in an hour. Alicia can iron 6 shirts and cook 1 meal in an hour. If they have to iron 15 shirts and cook 5 meals, who should specialize in which activity? Answer Selected Answer: Fiona should specialize in cooking meals and Alicia should specialize in ironing shirts. Correct Answer: Fiona should specialize in cooking meals and Alicia should specialize in ironing shirts. Question 5 10 out of 10 points In the early twentieth century, general stores in the upper Midwest had more power over prices because: Answer
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Selected Answer: the transportation network was bad, leaving farmers and buyers with no alternatives except the general stores in small towns. Correct Answer: the transportation network was bad, leaving farmers and buyers with no alternatives except the general stores in small towns. Question 6 10 out of 10 points In the example of Ireland described in the text, the country’s production set shifted outward over time because: Answer Selected Answer: it gained new resources over time which enabled it to specialize and gain comparative advantage in software trade with the U.S. and Europe.
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