Quiz1AnswerKey[1]

Quiz1AnswerKey[1] - ANSWER KEY Econ 101.2 Quiz 1 Summer...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ANSWER KEY Econ 101.2 Quiz 1 Summer 2010 Prof. A. Chaudhuri 1. Daniel decides to spend the last two hours of the night before his economics exam studying instead of sleeping. For Daniel, the opportunity cost of studying is a. nothing, since no dollar value can be put on sleep. b. nothing, since studying would be more beneficial than sleep. c. the six hours of sleep he could have had if he had gone to bed before midnight. d. the two hours of rest he would have gotten. The following graphs are Paul and Cliff’s production possibilities frontier for bushels of corn and wheat. Answer the next 3 questions based on the graphs. 2. According to the graph, the opportunity cost of 1 bushel of wheat for Cliff is a. 1/3 bushel of corn. b. 2/3 bushel of corn. c. 1 bushel of corn. d. 3/2 bushels of corn. 3. According to the graph, which of the following is true for Cliff and Paul? a. Paul has an absolute advantage in both wheat and corn. b. Paul has an absolute advantage in wheat and Cliff has an absolute advantage in corn. c. Cliff has an absolute advantage in wheat and Paul has an absolute advantage in corn. d. Cliff has an absolute advantage in both wheat and corn. 4. (2) According to the graph, which of the following is true for Cliff and Paul? a. Paul has a comparative advantage in both wheat and corn. b. Paul has a comparative advantage in wheat and Cliff has a comparative advantage in corn. c. Cliff has a comparative advantage in wheat and Paul has a comparative advantage in corn. d. Cliff has a comparative advantage in both wheat and corn.
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 5. (2) Dent'nScratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: _____ should specialize in truck sales and ______ should specialize in car sales. a. Ralph; Larry b. Larry; Ralph c. Joe; Ralph d. Larry: Joe 6. If a good is “normal,” then an increase in income will result in a. no change in the demand for the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a lower market price. 7. Suppose that scientists find evidence that proves chocolate pudding lowers cholesterol. We would expect to see a. no change in the demand for chocolate pudding. b. a decrease in the demand for chocolate pudding. c. an increase in the demand for chocolate pudding. d. a decrease in the supply of chocolate pudding.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/15/2011 for the course ECON 101 taught by Professor Pgking during the Spring '08 term at S.F. State.

Page1 / 9

Quiz1AnswerKey[1] - ANSWER KEY Econ 101.2 Quiz 1 Summer...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online