{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Micro1

# Micro1 - Sample Exam

This preview shows pages 1–4. Sign up to view the full content.

©Prep101 www.prep101.com/freestuff Page 1 of 21 Practice Micro Exam Q1. Last year CD-players were selling for \$30 and MP3-players were selling for \$40. David bought himself a CD-player for \$30. Now CD-players sell for \$50 and MP3- players sell for \$55. David’s friend offers him \$50 for the CD-player. What is David’s opportunity cost if he decides to keep the CD-player? a) \$55 b) \$30 c) \$40 d) \$50 e) \$55 Q2. Dennis is self-employed and earns \$30,000 a year. His total business expenses are \$5,000. Dennis was offered a job at the local restaurant for \$15,000 a year, but he turned down the offer. The economic profit Dennis gets from being self-employed is Q3. Robert can produce either 2 units of good A or 2 units of good B in an hour, while Raymond can produce either 2 units of good A or 4 units of good B in an hour. What would be the total output of goods A and B in an 8-hour day if Raymond and Robert each specialized in producing the good for which they have a comparative advantage?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document