Key for Midterm 1 Spring 2008 excerpts

Key for Midterm 1 Spring 2008 excerpts - Economics 100 Key...

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Economics 100 – Key for Midterm 1 Spring 2008 Question Answer Notes 1 B Scarcity is a situation in which available resources are not enough to satisfy the wants of the people. 2 D Given that your wants exceed your resources, you must choose what to buy and what not to buy. 3 E The opportunity cost is defined as the best alternative foregone. In this example, the best alternative would be to baby sit and earn $30 and not spend $10 for a total of $40. 4 C Remember the rule of thumb for the consumer: purchase until willingness to pay (or marginal benefit) equals price. 5 A Money is not a factor of production. Page 1 of 4
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Economics 100 – Key for Midterm 1 Spring 2008 26. Consider the market for DVD players. DVD Player Market 0 10 20 30 40 50 60 70 80 90 100 110 0 10 20 30 40 50 60 70 80 90 100 Quantity (millions of DVD players) Price ($ per DVD player) Market Supply Market Demand a. The price of a DVD player at the initial equilibrium is $60 .
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This note was uploaded on 02/11/2010 for the course ECON 100 taught by Professor Kasilwal during the Fall '07 term at CSU Long Beach.

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Key for Midterm 1 Spring 2008 excerpts - Economics 100 Key...

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