Econ Sample Quiz 1 Answer - SAMPLE Quiz 1 Econ103 Fall 2010...

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Unformatted text preview: SAMPLE Quiz 1 Econ103 Fall 2010 TA Emilie Bagby 1/2 Consumption Goods Consumption Goods Consumption Goods STUDENTS LAST NAME: FIRST NAME:_ Part I Multiple choices questions (10 points each) Choose the alternative that best answers each question. X Mark only one answer in each question. 1 - Country Alpha has a Production Possibility Curve as shown in Fig. 1. The president of Alpha wants to expand, as fast as possible , the production possibility curve of his country. Which of the points marked on the graph would be a feasible production choice and lead to the fastest expansion of the curve? Fig. 1 Production Possibility Curve of Alpha a) As more goods are produced, the dollar cost of this production increases. b) The amount of production decreases if costs increases. c) The opportunity cost of producing a good increases as more of the good is produced. d) Although total cost may increase as you produce more of a good, the opportunity cost of producing additional units of the good decreases. e) Greater division of labor is possible as production increases 4 The Opportunity Cost of producing a good is: a) The dollar amount paid to produce the good....
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This note was uploaded on 03/10/2011 for the course ECON 103 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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Econ Sample Quiz 1 Answer - SAMPLE Quiz 1 Econ103 Fall 2010...

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