Test 1
Based on this info graphic, what is the marginal cost of building the 1001st toy in this factory?
$2
Based on the law of increasing costs, the number that will go at the bottom of column 2 is most likely
90.
What scarcity-related choice must the owner of this calendar make?
How to best use her time
Why are more technology companies based in the San Francisco Bay Area than in any other part of the country?
Its resources are best suited to produce high-tech goods.
Which of the following is an example of scarcity rather than shortage?
Newly discovered Van Gogh paintings are put up for auction and sell for millions.
Why is the subject of the graph unable to produce any shoes when it grows 21 million tons of watermelons?
Resources are limited.
In a cost/benefit analysis, what would be the benefit of taking the Dallas North Tollway instead of Routes 75 and 380?
That route would require less travel time.
Which of the following conclusions is compatible with this graph?
The United States has a scarcity of petroleum.
Explain the reason some people more than others enjoy buying a lot of shoes.
They believe the marginal benefit of owning more shoes is greater than the marginal cost.
Which of the following is true about the photo shown here?
This man is improving his human capital by learning a skill.
A person is considered an entrepreneur because she
combined resources to create new products.
What is Bob's opportunity cost if he decides to go out to eat with friends?
getting exercise
Use the info graphic above. If this factory has to buy another machine in order to produce another 1,000 toys, its marginal costs will
increase.
If the libraries in question are public, what trade-off is illustrated by the photograph above?
lower taxes versus more government services
What is the opportunity cost of going to college?
no student loan debt
Sarah is thinking of buying an MP3 player. What would be the opportunity cost of buying the 64 GB model?
saving a significant amount of money
In the debate over guns vs. butter, which of the following is an example of butter?
schools
Since 2009, the production possibilities frontier has
shifted to the right.
Production possibilities curves are important tools for
showing ways to use an economy's productive resources.
This image of nearly empty shelves of bottled water indicates
that there is a shortage of bottled water.
The shift from line a (red) to line c (purple) means that
the economy has grown.
What explains the reason that only one extra hour of study time is needed to increase a grade from a C to a B, but three extra hours of study time are needed to increase a grade from a B to an A?
the law of increasing costs
Identify the physical capital in this photo
the tractor
Which of the following is an example of a land resource that a person who owns a restaurant would need?
the water used to for drinking and cleaning
A point to the left of the curve on the graph above would indicate
under utilization of the economy.
