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