Quiz_1_Answer_Key

Quiz_1_Answer_Key - PPF of an electronics manufacturer 3)...

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Quiz 1/16/09 1) In part, economics studies the choices that societies make as they cope with _____________ and the _____________ that influence these choices. a) scarcity; self-interest of consumers b) self-interest; marginal costs social terest; marginal costs c) social-interest; marginal costs d) scarcity; incentives Answer: d
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D 2) Which combination(s) are efficient? b) D only c) D & B PPF of an electronics manufacturer Correct Answer: c. Remember that “Production efficiency is a situation in which we cannot produce more of one good or service without producing less of something else”. Clearly, this happens in points B and D and doesn’t happen in A and C.
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Unformatted text preview: PPF of an electronics manufacturer 3) Which combination(s) are unattainable? a) A & C b) B & A c) C d) B & D D Correct Answer: c. A combination is unattainable if it is outside the PPF. The only point ouside the PPF is point C, so alternative c is the correct one. PPF of an electronics manufacturer D 4) As the manufacturer moves from B to D: a) MP3 player production increases and Cell Phone production decreases; b) MP3 player production increases and Cell Phone production increases; c) MP3 player production decreases and Cell Phone production increases; d) MP3 player production decreases and Cell Phone production decreases. Correct Answer: a....
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Quiz_1_Answer_Key - PPF of an electronics manufacturer 3)...

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