Week 1
How has employment in the textile industry in the US changed over the last 20 years?” Is this
an example of ________
a. Microeconomic
b. Macroeconomics
The key in this question is textile industry because it is only talking about one
industry.
“How has employment in the US changed over the last 20 years?” is an example of __________
a. Microeconomic
b. Macroeconomics
Suppose Remus decides to go fishing at Lake Pescaccio on his day off from work, but he faced a
choice; he can fish the east, south, or west side of the lake. His expected catch of the day is as
follows: 5 fish on the east side, 3 fish on the south side, or 4 fish on the west side. Everything
else held constant. Remus’ opportunity cost of fishing the west side of the lake is _____ fish
a. -1
b. 1
c. 3
d. 4
e. 5
f. 8
Suppose rational decision maker Charles faces a choice; he can either see Darian and the hip
drops or Beth Patterson in concert. Suppose further that tickets to see Darian are $10 each while
tickets to see Beth are $5. Everything else help constant, what is the opportunity cost of seeing
Darian if Charles has not yet purchased a ticket?
a. $10
b. $5
c. $10 puls the expected pleasue of seeing Beth in concert
d. $5 plus the expected pleasure of seeing Beth in concert
e. The expected pleasure of seeing Beth in concert
Suppose Meredith purchased cell-phone services from a company that charges $40 per month.
For that $40 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any
calls above 600 minute. Suppose further that Meredith has used 603 minutes this month so far.
Everything else help constant, the marginal cost of the 604th minute of calls Meredith make is
a. 0 cents
b. 25 cents
c. 1 dollar
d. 40 dollars
e. 41 dollars
, Week 2
While a 150,000 -170,000 per month trend in payrolls is far from booming, it is strong enough
over time to keep the unemployment rate moving down” is an example of a _________
statement
a. Positive --- if it is testable it is positive
b. Normative
“Japanese Summer: Double Suicide is a black and white film which would have been better in
color” is an example of a _________ statement
a. Normative
b. Positive
Given the production possibilities frontier shown, point q is _________ for Amanda (out)
a. Attainable
b. Unattainable
Given the production possibilities frontier shown, point r is _________ for Amanda (on)
c. Efficient
d. Inefficient
Romania is said to have the absolute advantage over Hungary in producing a good if
a. Romania can produce more of the good per worker hour than Hungary can
b. Hungary can produce more of the good per worker hour than Romania can
c. Romania has a higher opportunity cost of producing the good than does Hungary
d. Hungary has a higher opportunity cost of producing the good than does Romania
Hungary is said to have the comparative advantage over Romania in producing a good if
a. Romania can produce more of the good per worker than Hungary can
b. Hungary can produce more of the good per worker than Romania can
c. Romania has a higher opportunity cost of producing the good than does Hungary
Suppose Bruno and Licia can spend their days baking loaves of bread or planting tulip bulbs
Their productivity at each activity is the following:
Out put per worker per hour
Bread Tulips
Bruno 8 16
Licia 5 15
Licia’s opportunity cost of producing one bread is
a. 1/3 tulp
b. 5.8 bread
c. 8/5 bread
d. 3 tulips
e. 8 bread
f. 15 tulips
How has employment in the textile industry in the US changed over the last 20 years?” Is this
an example of ________
a. Microeconomic
b. Macroeconomics
The key in this question is textile industry because it is only talking about one
industry.
“How has employment in the US changed over the last 20 years?” is an example of __________
a. Microeconomic
b. Macroeconomics
Suppose Remus decides to go fishing at Lake Pescaccio on his day off from work, but he faced a
choice; he can fish the east, south, or west side of the lake. His expected catch of the day is as
follows: 5 fish on the east side, 3 fish on the south side, or 4 fish on the west side. Everything
else held constant. Remus’ opportunity cost of fishing the west side of the lake is _____ fish
a. -1
b. 1
c. 3
d. 4
e. 5
f. 8
Suppose rational decision maker Charles faces a choice; he can either see Darian and the hip
drops or Beth Patterson in concert. Suppose further that tickets to see Darian are $10 each while
tickets to see Beth are $5. Everything else help constant, what is the opportunity cost of seeing
Darian if Charles has not yet purchased a ticket?
a. $10
b. $5
c. $10 puls the expected pleasue of seeing Beth in concert
d. $5 plus the expected pleasure of seeing Beth in concert
e. The expected pleasure of seeing Beth in concert
Suppose Meredith purchased cell-phone services from a company that charges $40 per month.
For that $40 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any
calls above 600 minute. Suppose further that Meredith has used 603 minutes this month so far.
Everything else help constant, the marginal cost of the 604th minute of calls Meredith make is
a. 0 cents
b. 25 cents
c. 1 dollar
d. 40 dollars
e. 41 dollars
, Week 2
While a 150,000 -170,000 per month trend in payrolls is far from booming, it is strong enough
over time to keep the unemployment rate moving down” is an example of a _________
statement
a. Positive --- if it is testable it is positive
b. Normative
“Japanese Summer: Double Suicide is a black and white film which would have been better in
color” is an example of a _________ statement
a. Normative
b. Positive
Given the production possibilities frontier shown, point q is _________ for Amanda (out)
a. Attainable
b. Unattainable
Given the production possibilities frontier shown, point r is _________ for Amanda (on)
c. Efficient
d. Inefficient
Romania is said to have the absolute advantage over Hungary in producing a good if
a. Romania can produce more of the good per worker hour than Hungary can
b. Hungary can produce more of the good per worker hour than Romania can
c. Romania has a higher opportunity cost of producing the good than does Hungary
d. Hungary has a higher opportunity cost of producing the good than does Romania
Hungary is said to have the comparative advantage over Romania in producing a good if
a. Romania can produce more of the good per worker than Hungary can
b. Hungary can produce more of the good per worker than Romania can
c. Romania has a higher opportunity cost of producing the good than does Hungary
Suppose Bruno and Licia can spend their days baking loaves of bread or planting tulip bulbs
Their productivity at each activity is the following:
Out put per worker per hour
Bread Tulips
Bruno 8 16
Licia 5 15
Licia’s opportunity cost of producing one bread is
a. 1/3 tulp
b. 5.8 bread
c. 8/5 bread
d. 3 tulips
e. 8 bread
f. 15 tulips
