ECO2013

Refer to the table below. The marginal benefit of the 6th unit of activity is:

$2

The downward slope of the production possibilities curve illustrates the:

Scarcity Principle

An individual has an absolute advantage in producing pizzas if that individual:

can produce more pizzas in a given amount of time than anyone else.

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 table below. According to the table, Pat has the absolute advantage in:

delivering pizza

Refer to the figure below. Relative to point B, at point C this restaurant is:

making more pizzas and fewer salads.

The extra benefit that results from carrying out one additional unit of an activity is the ______ of the activity.

marginal benefit

The extra cost that results from carrying out one additional unit of an activity is the _____ of the activity.

marginal cost

The slope of a production possibilities curve is ______ because ______.

negative; producing more of one good requires producing less of the other

For Alex, the opportunity cost of cleaning one room is making ______ meal(s); for Lou the opportunity cost of cleaning one room is making ______ meal(s).

1; 4/5

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

Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:

$75

Refer to the figure below. The opportunity cost of producing one bushel of corn is:

2 bushels of wheat

Refer to the table below. Corey's opportunity cost of delivering of a pizza is making:

2 pizzas

Refer to the table below. Pat's opportunity cost of delivering a pizza is making:

2/3 pizza

Suppose the total benefit of watching 1 baseball game is 100, the total benefit of watching 2 games is 120, and the total benefit of watching 3 games is 125. In this case, the marginal benefit of watching the 3rd game is:

5

Refer to the figure below. For Pat, the opportunity cost of removing one bag of trash is planting:

5 bulbs

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

5 pizzas

The opportunity cost of producing a car in Genovia is:

50 tons of agricultural products.

Based on last month's data, ______ has an absolute advantage in selling cars and ______ has an absolute advantage in selling trucks.

Larry; Ralph

All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:

a higher opportunity cost of taking the day off work

Suppose that the extra cost to Tim of a third glass of soda is zero because he's at a restaurant that gives free refills. According to the Cost-Benefit Principle Tim should:

drink a third glass of soda if the extra benefit of doing so is positive.

Suppose Mary is willing to pay up to $15,000 for an used Ford pick-up truck. If she buys one for $12,000, her ______ would be ______.

economic surplus; $3,000

Larry has a comparative advantage over his classmates in writing term papers if he:

has a lower opportunity cost of writing term papers than his classmates.

If all the world's resources were to magically increase one hundredfold, then:

people would still have to make trade-offs

A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is called a(n):

production possibilities curve

The economic surplus of an action is:

the difference between the benefit and the cost of taking an action

The opportunity cost of an activity includes the value of:

the next-best alternative that must be foregone.

Ginger bought a phone that came with a $10 rebate. Ginger should fill out and mail in the rebate form if:

the opportunity cost of the time and trouble of sending in the rebate form is less than $10

Economists use abstract models because:

they are useful for describing general patterns of behavior.

Economists recognize that because people have limited resources:

they have to make trade-offs

Points that lie outside the production possibilities curve are ______, and points that lie inside the production possibilities curve are ______.

unattainable; attainable