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FinalExam_PracticeA - 1 In a particular country there are 4...

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1. In a particular country, there are 4 people – Sally, Bob, Jimmy, and Anna. They can produce either bowling balls or shoelaces. There production of each during one month is given by the table below: Bowling Ball Shoelaces Sally 5 5 Bob 5 10 Jimm y 10 30 Anna 10 5 Who should be the first to produce bowling balls for the entire economy? a. Sally b. Bob c. Jimmy d. Anna 2. Using the information from the question above, ________________ has the absolute advantage in the production of shoelaces, while _________________ has the comparative advantage in the production of shoelaces. 3. If both demand and supply for pickles decreased at the same time, we would expect the equilibrium price for pickles to ___________________, and the equilibrium quantity of pickles to ________________________. 4. We would expect the price elasticity of demand for a good with a lot of close substitutes (such as cola) to be __________________ as good with few close substitutes (such as prescription drugs. 5. The market demand curve can also be interpreted as _________________________. a. a marginal cost curve b. a consumer surplus curve c. a total social product curve d. a marginal social benefit curve
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