Page 1 Principles of Economics EC 1 UCLA Dr. Bresnock Quiz 1Choose the best answer to each question and mark it on your answer form. . A) B) C) D) 2. Which of the following is real capital? A) a pair of stockings B) a construction crane C) a savings account D) a share of IBM stock A) B) C) D) 1. Suppose that Zualia, which has full employment and full production, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically, but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. This reality illustrates:
has intentionally blurred sections.
Sign up to view the full version.
Page 2 Use the following to answer Question 3: Consumer GoodsECAG0 H B D FCapitalgoods3. Technological advance that is useful in producing capital goods but not in producing consumer goods is shown by the shift of the production possibilities curve from AB to: A) CD. B) BE. C) AF. D) GH. A) B) C) D) Use the following to answer Question 4: Marginalbenefitandmarginalcost(dollars)MarginalCostMarginalBenefit0Quantity of shoesQ1Q2Q3