exam 1 - Refer to the above diagram. If society is...

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Refer to the above diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost: A) will be 4 units of bicycles. B) will be 2 units of bicycles. C) will be zero because unemployed resources are available. D) of doing so cannot be determined from the information given. Answer the next question(s) on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina: Refer to the above tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be: A) 3 units of consumer goods. B) 4 units of consumer goods. C) 5 units of consumer goods. D) 6 units of consumer goods.
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Refer to the above diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles: A) cannot be achieved because resources are fully employed. B) will cost 1 unit of computers. C) will cost 2 units of computers. D) will cause some resources to become unemployed. Answer the next question(s) on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina: Refer to the above tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be: A) 10 units of capital goods. B) 1/4 of a unit of capital goods. C) 8 units of capital goods. D) 1/8 of a unit of capital goods.
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The output of MP3 players should be: A) reduced if marginal benefits exceed marginal costs. B) reduced if marginal costs exceed marginal benefits. C) increased if marginal costs exceed marginal benefits. D) reduced to zero if their unit costs exceed the unit costs of alternative products. In the figure above are two linear production possibilities curves for countries Alpha and Beta. We can conclude that: A) different value systems make it impossible to compare opportunity costs in the two countries. B) the opportunity cost of shelter is greater in Beta than it is in Alpha. C) the opportunity cost of food is greater in Alpha than it is in Beta. D) the opportunity cost of shelter is greater in Alpha than it is in Beta. Which of the following is a positive statement? A) The humidity is too high today. B) It is too hot to jog today. C) The temperature is 92 degrees today. D) Summer evenings are nice when it cools off. Refer to the above diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve: A) A B) B C) C D) D
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Refer to the above tables. Opportunity costs of producing military goods are: A) increasing in Duckistan but constant in Herbania. B) constant in both Duckistan and Herbania.
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This note was uploaded on 04/22/2010 for the course ECO 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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exam 1 - Refer to the above diagram. If society is...

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