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Practice Final Exam Version O.pdf - MULTIPLE CHOICE. Choose...

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MULTIPLE CHOICE.Choose the one alternative that best completes the statement or answers the question.1) If one fails to account for opportunity (implicit) costs in decision making, thenapplying the cost-benefit rule will be flawed because:A) the benefits will be understated.B) the costs will be understated.C) the costs will be overstated.D) the costs will be equal to the benefits.E) the benefits will be overstated.1)
2) Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tomspends all day making dishes, he will have make 16 dishes. If he instead devotes hisday to building fences, Tom will build 4 fences. If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences, he will build 7 fences. IfJerry decides to specialize in building fences, what are the limits to his terms of trade?2)
3) An increase in an economy's productive resources will lead the productionpossibilities curve to:3)
1
4)Refer to the figure above. Suppose that only demand has suddenly shifted to the left.To restore equilibrium, this market will have an immediate:4)
5) If the demand for computers shifts to the right as consumers' incomes rise, computersareA) inferior goods.B) complement goods.C) normal goods.D) substitute goods.5)
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Figure 6-46) Refer to Figure 6-4. Which of the following statements is true about the priceelasticity of demand?6)

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Term
Fall
Professor
Staff
Tags
Economics, Microeconomics, Supply And Demand, Average cost, point d

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