ECO 251- Principles of Microeconomics (Quiz #1)

Refer to Table 3-6. The opportunity cost of 1 mixer for Maya is

1.6 toasters.

Refer to Table 3-8. The opportunity cost of 1 plate for Min is

2 parasols

Refer to Table 3-4. The opportunity cost of 1 pound of potatoes for the rancher is

2 pounds of meat.

Refer to Figure 3-8. Chile's opportunity cost of one pound of soybeans is

4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.

Refer to Figure 3-5. Hosne's opportunity cost of one purse is

4/5 wallet and Merve's opportunity cost of one purse is 3/2 wallets.

Refer to Table 3-12. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

7.5 pounds of meat and 6 pounds of potatoes.

Refer to Table 2-4. What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

75 waffles

Refer to Figure 2-12. One difference between points A and B is that

All resources are fully employed at point A but there is unemployment at point B.

Which of the following is a correct statement about production possibilities frontiers?

An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.

Refer to Figure 2-6. Inefficient production is represented by which point(s)?

C, F, G

Refer to Figure 2-3. Unemployment could cause this economy to produce at which point(s)?

M

Which of the following statements is an example of a positive, as opposed to normative, statement?

Reducing emissions reduces days missed from school due to asthma.

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events would prompt you to reverse this decision?

The marginal benefit of going to Spain increases.

Travis can mow a lawn in two hours or he can trim a tree in one hour. Ricardo can mow a lawn in three hours or he can trim a tree in two hours.

Travis has an absolute advantage over Ricardo in trimming trees.

When the government attempts to improve equality in an economy the result is often

a reduction in efficiency.

Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade could

benefit both Jayson and Regan.

Brenda is an excellent baker and Floyd has a plentiful farm. If Floyd trades eggs and butter to Brenda for some of Brenda's bread and pastries,

both Floyd and Brenda are made better off by trade.

Refer to Figure 3-5. Hosne has an absolute advantage in the production of

both goods and Merve has an absolute advantage in the production of neither good.

If he devotes all of his available resources to cantaloupe production, a farmer can produce 120 cantaloupes. If he sacrifices 1.5 watermelons for each cantaloupe that he produces, it follows that

his opportunity cost of one watermelon is 2/3 of a cantaloupe.

Refer to Figure 3-4. Perry has an absolute advantage in the production of

neither good and Jordan has an absolute advantage in the production of novels.

Refer to Table 3-8. Min has an absolute advantage in the production of

plates and a comparative advantage in the production of plates.

Refer to Table 3-10. Shantala has an absolute advantage in

programming cellular phones and a comparative advantage in programming cellular phones.

You have driven 500 miles on a vacation and then you notice that you are only 25 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include

the cost of driving the next 25 miles, but not the cost of driving the first 500.

Denise decides to spend three hours working overtime rather than watching a video with her friends. She earns $10 an hour. Her opportunity cost of working is

the enjoyment she would have received had she watched the video.

When computing the opportunity cost of attending a concert you should include

the price you pay for the ticket and the value of your time.