Econ 224 Exam 11

As a student, Jordyn spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Jordyn's production possibilities frontier is a straight line if a.she can switch between writing term papers and completing homework assignments at a constant rate. b.she faces no trade-off between writing term papers and completing homework assignments. c.she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments. d.the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing.

a. she can switch between writing term papers and completing homework assignments at a constant rate.

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation? a. Consumers have experienced an increase in income, and beef-production technology has improved. b. The price of chicken has risen, and the price of steak sauce has fallen. c. New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy. d. The demand curve for beef must be positively sloped.

c

Absolute advantage is found by comparing different producers' ____________.

opportunity cost

opportunity cost formula

y=total amt of good x given up/total amt of good x produced