Before an exchange is made a person is said to be in the a ex ante position b

# Before an exchange is made a person is said to be in

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7.Before an exchange is made, a person is said to be in thea.ex antepositionb.ex postpositionc.ceteris paribuspositiond.current positione.ex calibrepositionANS: ADIF:Easy8.The __________ refer(s) to how much of one thing is traded for how much of something else.9.The terms of trade moved in the buyer's favor. It follows that the price __________ by the buyer fell and the price __________ by the seller __________.10.Transaction costs are11.Which of the following purchases is likely to have the highest transaction costs?a.a loaf of bread at the grocery storeb.the 100 shares of stock onlinec.a book from an online booksellerd.a housee.a book from the university bookstore34
ANS: DDIF:Easy12.If Mark and Bob are not currently trading \$10 for a book, it may be because13.If there is always a two-for-one tradeoff between goods X and Y, then the PPF between X and Y is14.Points inside (or below) the PPF are15.If the tradeoff between goods X and Y increases as more of good X is produced, the PPF between the two goods isa.a downward-sloping straight line.b.circular.c.an upward-sloping curved.a downward-sloping curve that is bowed outward.ANS: DDIF:Moderate16.Consider the following combinations of guns and butter that can be produced: 0 guns, 20,000 units of butter; 5,000 guns, 15,000 units of butter; 10,000 guns, 10,000 units of butter; 15,000 guns, 5,000 units of butter; 20,000 guns, 0 units of butter. The PPF between guns and butter is