Quiz%202 - ECON 210, QUIZ 2 NAME: _ READ THE FOLLOWING...

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ECON 210, QUIZ 2 NAME: ________________________________ READ THE FOLLOWING QUESTIONS AND BUBBLE IN YOUR ANSWER CHOICE IN THE PROVIDED SCANTRON (BUBBLE SHEET) USING A PENCIL. DO NOT FORGET TO ENTER YOUR ID NUMBER ON THE SCANTRON . GOOD LUCK! 1. The marginal cost of a good is: a. Its monetary market value b. Its monetary cost of production c. The difference between the market price and its monetary cost of production d. The amount of other goods that must be forgone to obtain one more unit of the good 2. How is production efficiency achieved? a. Each producer decides what to make based on her preferences b. The producer with absolute advantage in the production of a good will always produce the good c. The government determines the optimal level of output and tells each producer what to make d. Each producer specializes in producing only the good in which she has comparative advantage 3. Which of the following observation(s) about a bowed out Production Possibility Frontier (PPF) are false
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This note was uploaded on 02/26/2012 for the course ECON 210 taught by Professor Staff during the Fall '08 term at Purdue.

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Quiz%202 - ECON 210, QUIZ 2 NAME: _ READ THE FOLLOWING...

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