Exam 1 Pink Econ 25100 Fall 2010

Exam 1 Pink Econ 25100 Fall 2010 - ECON 251 Exam 1 Pink...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 251 Page 1 of 10 Fall 2010 Exam 1 Pink ECON 251 Exam 1 Pink Fall 2010 Use the following information to answer the following four questions: Jonathan and Pete produce two goods, basketballs and footballs. In a day Jonathan can produce 10 basketballs or 5 footballs. Pete can produce either 12 basketballs or 4 footballs in a day. 1. What is Jonathan’s marginal cost of producing a basketball? a. 1/3 of a football b. ½ of a football c. 2 footballs d. 3 footballs 2. ______________ has an absolute advantage in producing basketballs and __________ has a comparative advantage in producing footballs. a. Jonathan, Jonathan b. Jonathan, Pete c. Pete, Jonathan d. Pete, Pete 3. If footballs are measured on the x axis, what is the slope of Jonathan’s production possibilities frontier (PPF)? a. -1/2 b. -1 c. -2 d. -1/3 4. Assume that Jonathan and Pete work together to produce basketballs and footballs. Which of the following production combinations is on their joint PPF? a. 22 basketballs and 9 footballs b. 12 basketballs and 5 footballs c. 10 basketballs and 4 footballs d. 20 basketballs and 2 footballs 5. Teagan is trying to decide how to spend her day. She can travel to Chicago which she values at $75. Or she can stay in West Lafayette and study economics which she values at $25. Teagan could also attend the Purdue football game with friends which she values at $50. She can only do one activity for the day. What is the opportunity cost for Teagan of studying economics? a. $25, the value to her of studying economics b. $50, the difference between the value to studying economics and the value of traveling to Chicago c. $75, the value of going to Chicago
Background image of page 1

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

View Full DocumentRight Arrow Icon
Econ 251 Page 2 of 10 Fall 2010 Exam 1 Pink d. $125, the sum of the value of going to Chicago and the value of going to the football game
Background image of page 2
Econ 251 Page 3 of 10 Fall 2010 Exam 1 Pink 6. Micah bought a new car last week for $22,000. The sticker price on the car was $25,000. Today, he could sell the car for $20,000. Based on this information, what is his opportunity cost of owning the car today? a. $20,000 b. $22,000 c. $42,000 d. $45, 000 7. The table below represents the production possibilities for a small country that produces only books and chocolate. What is the marginal cost of producing the 8 th pound of chocolate? Books 18 15 9 0 Chocolate 3 6 9 12 a. 1 book b. 2 books c. 3 books d. 9 books 8. The table below shows Miles’ marginal benefit for tuna sandwiches. Using this information, how many tuna sandwiches would Miles buy if the price of a tuna sandwich is $4? Quantity Marginal Benefit 1 10 2 6 3 3 4 2 5 0 a. 2 b. 3 c. 4 d. 5
Background image of page 3

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

View Full DocumentRight Arrow Icon
Econ 251 Page 4 of 10 Fall 2010 Exam 1 Pink 9. An Iowa egg producer is recalling 380 million eggs linked to an outbreak of salmonella poisoning. How does this widely publicized news affect the demand for eggs? a.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Exam 1 Pink Econ 25100 Fall 2010 - ECON 251 Exam 1 Pink...

This preview shows document pages 1 - 5. Sign up to view the full document.

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