eco study

In general, individuals and nations should specialize in producing goods ______ other individuals or nations.

for which they have a lower opportunity cost compared to

The fundamental reason firms outsource is that:

hiring low-wage workers overseas reduces firms' costs.

If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ______ in the production of that good.

comparative advantage

Refer to the accompanying table below. The marginal cost of the 4th unit of activity is: Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43

$8

Regarding specialization, it is generally true that:

specialization imposes costs as well as benefits.

Microeconomics differs from macroec

the choices made by individuals and the implications of those choices.

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100th meal is:

$0

Jack has a ticket to see the Foo Fighters for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the concert. When he arrives at the concert, five different people offer him $70 for his ticket. Jack decides to keep his ticket. At the time he makes this decision, his opportunity cost of seeing the Foo Fighters is:

$70.

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 The opportunity cost of making a calculator for Smith is ______ and for Jones it is ______.

0.10 computers; 0.05 computers

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, Joe's opportunity cost of selling a truck is selling:

1 car

Refer to the accompanying figure. Moving from point B to point A, the opportunity cost of 25 more salads is:

10 pizzas.

Refer to the accompanying table. Julia's opportunity cost of making a cake is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes

6/5 of a pie.

Which of the following would not be studied in macroeconomics?

How a sharp increase in gasoline prices is likely to affect SUV sales.

The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are attainable.

W, X, Y, Z, V, and T

The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are efficient.

W, X, Y, Z, and V

Suppose Colin brews beer and makes cheese. If Colin can increase his production of beer without decreasing his production of cheese, then he is producing at an:

inefficient point.

The field of economics that would be most concerned with a recent fall in interest rates is:

macroeconomics.

Points that lie below the production possibilities curve are inefficient because:

more of one good could be produced without producing less of the other.

The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts. Relative to point X, at point Y:

more skirts and fewer dresses are produced.

An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:

normative economics.

Production possibilities curves for large economies are generally bow-shaped because:

opportunity costs tend to increase with increases in production.

Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making _______ while Julia should specialize in making _______. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes

pies; cakes