module 1: econ

For which of the following individuals would the opportunity cost of going to college be highest?

A famous, highly paid actor who wants to take time away from show business to finish college and earn a degree

Refer to Figure 2-3. Efficient production is represented by which point(s)? PUT PICTURE HERE

C,D

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

both Dale and Terrence are made better off by trade

Efficiency means that

society is getting the most it can from its scarce resources.

Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board, and $1,900 on books. If she does not go to college, she will earn $16,000 working in a store and spend $8,000 on room and board. Miray's cost of going to college is

$45,900

Refer to Table 3-2. Assume that England and France each has 40 labor hours available. If each country devotes 20 to production of bread and 20 to production of lemonade, then total production is

24 units of bread and 15 units of lemonade.

Refer to Table 2-2. What is the opportunity cost to Supertown of increasing the production of toys from 200 to 300?

500 glasses

Which of the following statements about comparative advantage is not true?

Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources.

Fossil fuels are considered to be nonrenewable energy sources. Which of the following statements is correct?

Fossil fuels are scarce resources

Refer to Figure 2-5. Which of the following events would explain the shift of the production possibilities frontier from A to B?

a general technological advance

Trade between countries

allows each country to consume at a point outside its production possibilities frontier.

In the markets for goods and services in the circular-flow diagram,

firms provide households with output

Absolute advantage is found by comparing different producers'

input requirements per unit of output

Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that

people face tradeoffs

The adage, "There ain't no such thing as a free lunch," means

people face tradeoffs

Alana decides to spend 2 hours working overtime rather than going shopping with her friends. She earns $11 per hour for overtime work. Her opportunity cost of working is

the enjoyment she would have received had she gone shopping

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

the nation is not using all available resources or is using inferior technology or both

The marginal benefit Joseph gets from purchasing a fourth pair of shoes is

the total benefit he gets from purchasing four pairs of shoes minus the total benefit he gets from purchasing three pairs of shoes.

Economics is the study of how society manages its

unlimited wants and limited resources.

The opportunity cost of an item is

what you give up to get that item