Question

macoroeconomics

1. Society as a whole faces opportunity costs because a. there is not enough money to go around b. politicians are greedy c. resources are scarce d. our needs are unlimited 2. Mary decides to spend 3 hours working overtime rather than watching a video with her friends. She earns $9 an hour. Her opportunity cost of working is: a. the enjoyment she would have received had she watched the video with friends. b. $27 she earns working c. $27 minus the enjoyment she would have received from watching the video d. So, since she decided to work. 3. What is the economic meaning of the expression that "there is no such thing as a free lunch"? a. Economic freedom is limited by the amount of income available to the consumer. b. There is an opportunity cost when resources are used to provide and consume "free" products. c. It refers to "free-riders," who do not pay for the cost of a product, but who receive the benefit from it. d. It indicates that products have value only when people are willing to pay for them. 4. If an increase in income leads to a decrease in the demand for hot dogs, then hot dogs are a) an inferior good b) a normal good c) a complementary good d) a substitute good 5. In a market system, prices are determined by a corporate executives b. the government c. total market demand d. supply and demand 6. Figure on the right shows a student's tradeoff between social satisfaction (fun) and grades (GPA). To obtain higher grades, the student has to give up some fun. GPAA 4.0 a. Is point G efficient? b. Is point F feasible? 3.0 c. Mark point X, feasible and efficient. d. The opportunity cost of raising your GPA from 3.0 to 4.0 is units of 15 foregone fun e. The opportunity cost of raising your GPA from 0.0 to 1.0 is of fun f. Suppose you can only get at most 85 units of fun (you forgot how to have fun!). Draw the new PPF line 0 35 70 85 100 Fun 7. Italy and France produce and consume two goods, cheese and wine. The table below shows labor productivity (typical worker's output per day) in both countries. Output per unit of labor input a. The opportunity cost of 1 Cheese in Italy is units of Cheese Wine Italy 10 b. The opportunity cost of I Cheese in France is units of France 45 c. Italy has comparative advantage in d. France has comparative advantage in e. Sketch PPFs for Italy and France. Label your graphs.

Answer 1

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