ECON 101 Test

ECON 101 Test - Econ101:Test1ReviewQuestionsF09 1 1.

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Econ 101:  Test 1 Review Questions – F09 1 1. Your friends go to the movies one evening and you decide to stay home and do your  economics assignment and practice test.  You get 80 percent on your economics test  compared with the 70 percent that you normally score.  What is the opportunity cost of your  extra points? 2. You plan to go to school this summer.  If you do, you won’t be able to take your usual job  that pays $6,000 for the summer and you won’t be able to live at home for free.  The cost of  tuition is $2,000 and textbooks are $200 and living expenses are $1,400.  What is the  opportunity cost of going to summer school? 3. Harold takes two hours off of work to go to the dentist.  His firm pays him $25 an hour.  The dentist charges Harold $50.  What is the opportunity cost of Harold’s trip to the dentist? 4. In Portugal, the opportunity cost of a bale of wool is 3 bottles of wine.  In England, the  opportunity cost of 1 bottle of wine is 3 bales of wool.  Which country has a comparative  advantage in wine production? 5. The diagram below shows a diagram of the production possibilities frontier. a) What is the name of the shape of the frontier? b) Which points are efficient? c) Which points are inefficient? d) Label the attainable region.
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Econ 101:  Test 1 Review Questions – F09 2 e) Label the unattainable region. f)
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This note was uploaded on 12/19/2011 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.

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ECON 101 Test - Econ101:Test1ReviewQuestionsF09 1 1.

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