1. ____ has the absolute advantage in sending emails while ____ has the absolute advantage in typing pages.
a. Jennifer; Jennifer
b. Jennifer; Brad
c. Brad; Jennifer
d. Brad; Brad
2. What is Brads marginal cost of sending 1 email?
a. 1/2 of a typed page
b. 2/5 of a typed page
c. 2 typed pages
d. 2.5 typed pages
3. The person with the comparative advantage in sending emails has the _____ marginal cost of sending an email. Based on this fact, _____ has the comparative advantage in sending emails.
a. Lower; Jennifer
b. Lower; Brad
c. Higher; Jennifer
d. Higher; Brad
4. Assume that Jennifer and Brad work together to send emails and type pages. Which of the following points would NOT be on Jennifer and Brad's joint production possibility frontier? (Note: It does not matter which task you measure on which axis for this problem. If it helps, assume that emails are on the x-axis and pages are on the y-axis).
a. 55 emails and 0 pages
b. 30 emails and 10 pages
c. 25 emails and 15 pages
d. 0 emails and 25 pages
5. Based on the graph above, ______ has the absolute advantage in brownie making, while _____ has the comparative advantage in brownie making.
a. Paxton; Amanda
b. Amanda; Paxton
c. Paxton; Paxton
d. Amanda; Amanda
Use the figure below to answer question #6:
6. Compared to point A, the marginal cost of producing good Y at point B is
a. Higher
b. The same
c. Lower
d. More information is needed to answer this question.
7. If a large amount of skilled labor immigrates into the country, which allows the available resources to produce more of goods X and Y, which of the following would occur?
a. The y-intercept of the PPF will rise, and the x-intercept of the PPF will fall.
b. The y-intercept of the PPF will rise, and the x-intercept of the PPF will rise.
c. The y-intercept of the PPF will fall, and the x-intercept of the PPF will fall.
d. The y-intercept of the PPF will fall, and the x-intercept of the PPF will rise.
Use the following information to answer questions #8-#9.
The table below represents different points along a production possibilities frontier:
8. What is the marginal cost of producing the second car?
a. 500 cookies
b. 750 cookies
c. 1750 cookies
d. 2750 cookies
9. Which of the following points would be considered infeasible?
a. (0 cars, 2000 cookies)
b. (2 cars, 1750 cookies)
c. (2.5 cars, 300 cookies)
d. (3 cars, 1500 cookies)
10. Which of the following would decrease the demand for movie tickets?
a. An increase in the price of move tickets
b. A decrease in the price of popcorn, a complement in consumption
c. An decrease in income, and movie tickets are a normal good
d. Both a & c are correct
11. How does a decrease in demand for movie tickets affect equilibrium in the market for movie tickets?
a. Equilibrium price will rise, and equilibrium quantity will be indeterminate
b. Equilibrium price will fall, and equilibrium quantity will fall
c. Equilibrium price will fall, and equilibrium quantity will rise
d. Equilibrium price will be indeterminate, and equilibrium quantity will fall
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