Economic Decision-making
Given the data below, what is the marginal cost of the 10th unit of production?
quantity Total Cost
1 5
5 8
10 13
1
Is this a capital or consumption good?
Texas Instruments purchases 15 computers for its Accounting department
Capital Good
The budget constraint measures the ___ of a consumer.
a. Price ranges
b. Expected value
c. Income expectations
d. Consumption Possibilites
e. Quantity Demanded
D. Consumption Possibilities
The market clears when
a. Qd=Qs
b. Pd=Ps
c. the terms of trade reflect competitive advantage
a. Qd=Qs
Is this statement Positive or Normative?
Paying members of Congress more provides them with less incentive to fund raise
Positive statement
At an amusement park, Sue achieves a total benefit of 10 on her first roller coaster ride and a total benefit of 16 after her second ride. Her marginal benefit from her second ride is:
6
a. MC is increasing
b. MC is constant
c. Supply is decreasing
d. Opportunity Cost is zero
A. MC is increasing
If the price of X is Px=3, the price of Y is Py=6 and Income I=24, then the slope of the budget constraint is:
-1/2
When a surplus occurs, market forces cause
a. Qd to decrease
b. P to rise
c. Qs to increase
d. P to decrease
D. Price to decrease
The science/study of allocation of scarce resources and the incentives necessary to allocate them efficiently
Economics
If a firm produces 6 units of output, its total cost is 4, and if it produces 8 units of output its total cost is 10. What is the marginal cost (MC) of producing the 8th unit of output?
3
Which of the following would shift the PPF curve inward?
a. Tariffs
b. Increase in the Price of a substitute
c. Decrease in work week to 35 hours
d. Discovery of oil
C. Decrease in work week to 35 hours
Suppose you have $400 to spend on fruit. Apples cost $25 each and peaches cost $10 each.
What is the opportunity cost of consuming one apple?
2.5 Peaches
If Qd=120-20P and Qs=20P calculate market equilibrium
(60,3)
What is a tradeoff for tariffs?
a. PPF shifts inward
b. Harmful for consumers
c. Demand shifts outward
B. Harmful for consumers
If Opportunity Cost is $500 and Economic cost is $650, what is the Direct Cost amount?
$150
The US can produce 80 Violins and 80 Guitars. Canada can produce 40 Violins and 16 Guitars.
If the Price of Guitars=4 and Price of Violins=2, what are the US' consumption possibilities under these terms of trade?
160 Violins
50x+20y=60
-Find the Price Ratio
Price Ratio= 2.5
If Qd=-1/3P+8 and Qs=1/2P-6
when price is =$8 is there a shortage or a surplus?
Shortage
If Qd=-1/5P+5 and Qs=2P-28
when price=$13 is there a shortage or a surplus
Shortage