Question

When Wanda studies three hours for an economics exam she makes a “C” and when she studies five hours she makes a “B.” If Wanda experiences the law of increasing opportunity cost when studying economics, then in order to make an “A” on an exam, Wanda must study _____ hours.

less than six

between five and seven

exactly seven

more than seven

at least eight

more than fifteen

According to marginal analysis, the optimal or efficient number of HDTVs is the quantity at which the

marginal benefit of the last HDTV produced equals the marginal cost of the last TV produced.

average benefit of all HDTVs produced equals the average cost of all HDTVs produced.

total benefit of all HDTVs produced equals the total cost of all HDTVs produced.

marginal benefit of the last HDTV produced is zero.

marginal cost of the last HDTV produced is zero.

the average benefit of the last HDTV produced equals the marginal benefit of the last HDTV produced.

A concave outward production possibilities frontier (PPF) for food and clothing illustrates

the combinations of food and clothing that the economy is capable of producing when using its resources and technology fully and efficiently.

the quantity of food that must be sacrificed to produce an additional unit of clothing.

that the opportunity cost of food increases as the production of food increases.

that the inputs used in the production of food and clothing are specialized.

that the opportunity cost of clothing decreases as the production of clothing decreases.

all of the above.

Answer 1

When Wanda studies three hours for an economics exam she makes a “C” and when she studies five hours she makes a “B.” If Wanda experiences the law of increasing opportunity cost when studying economics, then in order to make an “A” on an exam, Wanda must study _____ hours.

at least eight

The law of increasing opportunity cost states that as we continue to increase production of one good, the opportunity cost of producing that next unit increases. This comes about as you reallocate resources to produce one good that was better suited to produce the original good. Here, for better grades Wanda would have to give more hours than before. She had to increase 2 hours to get B from C grade so now she would have to add more than 2 hours to get grade A. This means 3 hours +2 hours + at least 3 hours to get A.

According to marginal analysis, the optimal or efficient number of HDTVs is the quantity at which the

marginal benefit of the last HDTV produced equals the marginal cost of the last TV produced.

A concave outward production possibilities frontier (PPF) for food and clothing illustrates

the combinations of food and clothing that the economy is capable of producing when using its resources and technology fully and efficiently.

the quantity of food that must be sacrificed to produce an additional unit of clothing.

that the opportunity cost of food increases as the production of food increases.

that the inputs used in the production of food and clothing are specialized.

that the opportunity cost of clothing decreases as the production of clothing decreases.

all of the above.