hw1-ans

hw1-ans - Homework 1 Answers 1. B 2. C 3. D 4. A 11. B 12....

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Page 1 Homework 1 Answers 1. B 2. C 3. D 4. A 5. A 6. C 7. B 8. B 9. A 10. D 11. B 12. C 13. B 14. A 15. D 16. A 17. C 18. B 19. D 20. D 1. The best measure of the opportunity cost of any choice is: A) the monetary cost of that choice. B) whatever you have given up to make that choice, even if no monetary costs are involved. C) the cost associated with not taking full advantage of the opportunity offered by that choice. D) your hourly wage. 2. We are forced to make choices because of: A) exploitation. B) efficiency. C) scarcity. D) the margin. 3. A friend comes up to you and offers to give you a free ticket to the local professional team's baseball game that night. You decide to attend the game. The game takes five hours and costs you $15 for transportation. If you had not attended the game, you would have worked at your part-time job for $8 an hour. What is the cost of you attending the game? A) The cost is zero—the ticket is free. B) $65 C) $40 D) $55 Use the graph on the right to answer questions 4-7 4. On this figure, points A, B, E, and F: A) indicate combinations of guns and butter that society can produce using all of its factors efficiently. B) show that the opportunity cost of more guns increases, but that of more butter decreases. C) indicate that society wants butter more than it wants guns. D) indicate constant costs for guns and increasing costs for butter. 5. This production possibility frontier is: A) bowed out from the origin because of increasing opportunity costs. B) bowed in toward the origin because of increasing opportunity costs. C) bowed in toward the origin because of constant costs of guns and butter. D) linear because of constant costs.
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hw1-ans - Homework 1 Answers 1. B 2. C 3. D 4. A 11. B 12....

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