SampleTest1Answers - MULTIPLE CHOICE. Choose the one...

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the figure above, suppose that Mac and Izzie specialize and trade to reach point c . Mac sends Izzie 1) _________ A) 6 computers in exchange for 12 TVs. B) 6 computers in exchange for 6 TVs. C) 12 computers in exchange for 6 TVs. D) 12 computers in exchange for 12 TVs. Answer: B 2) Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if ________. 2) _________ A) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes B) Tom can grow more tomatoes than Di can C) his opportunity cost of tomatoes is less than his opportunity cost of turnips D) his marginal benefit from tomatoes is greater than Di's Answer: A 3) Jane produces only corn, measured in tons, and cloth, measured in bolts. For her, the opportunity cost of one more ton of corn is 3) _________ A) the inverse of the opportunity cost of one more bolt of cloth. B) the same as the opportunity cost of one more bolt of cloth. C) the ratio of the acres of land she uses to graze sheep to the acres she uses to grow corn. D) the ratio of all the bolts of cloth she produces to all the tons of corn she produces. Answer: A 4) Abe can catch 15 pounds of fish an hour or pick 30 pounds of fruit an hour. He works an 8-hour day, spending 5 hours picking fruit and 3 hours catching fish. Calculate Abe's opportunity cost of a pound of fruit. 4) _________ A) 0.5 pounds of fish B) 2 pounds of fish C) 6 minutes D) 3 hours a day Answer: A 5) The marginal benefit of a good or service is measured by 5) _________
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A) the consumers' ability to pay for it. B) the average social benefit received from consuming it. C) willingness to pay for an additional unit of it. D) the cost of producing an additional unit of it. Answer: C 6) Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade. After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________. 6) _________ A) decreased, decreased B) increased, increased C) decreased, increased D) increased, decreased Answer: B Point Production of grain (tons) Production of cars (cars) A 0 30 B 2 28 C 4 24 D 6 18 E 8 10 F 10 0 7) The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car? 7) _________ A) 0.5 tons of grain B) 4 tons of grain C) 2 tons of grain D) 0.25 tons of grain Answer: A
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Quantit y (pizzas per day) Margin al benefit (cans per day) Margin al cost (cans per day) 10 26 14 20 24 16 30 22 18 40 20 20 50 18 22 60 16 24 70 14 26 8) The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. If ________ pizzas are produced, the quantity of soda that people are willing to give up to get an
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SampleTest1Answers - MULTIPLE CHOICE. Choose the one...

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