Question

1.

Which factor would shift the demand curve for gasoline to the right?
	a decrease in the number of consumers an increase in the price of gasoline an increase in national income a decrease in the price of alternative forms of energy

2.

inking at the margin involves:
	influencing how individuals make decisions. weighing the impact of one additional activity. maximizing a firm's or individual's well-being. making wiser decisions given limited information.

3.

(Table) The table shows the production possibilities schedule for guns and butter. The opportunity cost of increasing gun production from 100 units to 200 units is:

Guns (hundreds) Butter (tons) 4 10 3 15 0 5 20 25

	0 tons of butter.
	5 tons of butter.
	10 tons of butter.
	15 tons of butter.

Answer 1

1) The factor that will shift the demand for gasoline to the right is an increase in National Income. Since an increase in national income would also lead to an increase in consumers income. And the demand of consumers will rise leading to a rightward shift in the demand curve. So, correct option is C.

All other options are factors that would shift the demand curve leftward. So, those options are incorrect.

2) Inking at the margin involves weighing the impact of an additional activity since marginal means 'additional'. So, option B is correct and all other options incorrect.

3) The opportunity cost is the value of the next best alternative. The opportunity cost of increasing gun production from 100 units to 200 units is 5 tons of butter since the quantity of butter decreases from 25 to 20 tons. So, option B is correct and all other options are incorrect.

Please comment if you have any doubts...