practiceexam1A[1]

# practiceexam1A[1] - ECON 251 Exam #1 Spring 2009 (practice...

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6. Sara bought a ticket to a concert for \$40 that she can’t resell. If she attends the concert, she’ll likely buy \$20 in souvenirs and will have to cancel a babysitting job where the expected to earn \$25. Which of the following would NOT be included in her opportunity cost of attending the concert? a. The \$40 price of the concert ticket b. The \$20 she expects to spend on souvenirs c. The \$25 she expects to earn from babysitting d. All of the above would be included in the opportunity cost of attending the concert. 7. The table below shows the production possibilities for a small economy that produces only jeans and sweaters. What is the marginal cost of the 15 th pair of jeans? Jeans 0 12 24 36 Sweaters 15 13 7 0 a. ½ of a sweater b. 2 sweaters c. 6 sweaters d. 12 sweaters 8. The Tennisclode Inc. produces two products, tennis rackets and tennis balls. The graph below shows its PPF. In moving along the PPF from point A to B, the marginal cost of tennis ball production a. Increases b. Decreases c. Stay the same d. Increases and finally decreases Econ 252 Spring 2009 Page 2 of 9 Exam 1 Pink rackets balls B
9. Based on the PPF for Tennisclode above, which of the following points satisfies production efficiency? a.

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## This note was uploaded on 02/10/2010 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

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practiceexam1A[1] - ECON 251 Exam #1 Spring 2009 (practice...

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