Econ 102 PSU All Study Questions/Answer 2025/2026 Graded
A+
When a chef creates a dinner plate of food for a customer, which represents physical
capital?
A) the chef
B) the oven
C) the food ingredients
D) the chef's training and experience I think this may be a redundant answer to "A" - B)
oven
Which is not an example of a resource?
A) land
B) labor
C) capital
D) production - D) production
Which can best be considered the resources used in the production of computers?
A) money from investors
B) wages of computer engineers
C) computer engineers
D) taxes paid on the profits from the sale of the computers - C) computer engineers
Opportunity Cost - Value of the most highly-valued alternative necessarily sacrificed
You have a free coupon that can be used to buy either a taco, a burrito, or an order of
nachos. Given your tastes, the value of a taco to you is about $3.50, the value of a
burrito is $5, and the value of an order of nachos is $2. If you buy a burrito, the value of
your most highly-valued sacrificed alternative is ______________. - $3.50 - the value of
the burrito.
You have a free coupon that can be used to buy either a taco, a burrito, or an order of
nachos. Given your tastes, the value of a taco to you is about $3.50, the value of a
burrito is $5, and the value of an order of nachos is $2. The opportunity cost of buying
the burrito is
A) zero, because the coupon was free.
B) the $3.50 value you would have enjoyed by buying the taco.
C) the $3.50 value of the taco plus the $2 value of the nachos.
D) the sum of the $5 value of the burrito, the $3.50 value of the taco, and the $2 value
of the nachos. - B) the $3.50 value you would have enjoyed by buying the taco
Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is:
A) zero—the tickets were free.
B) the price listed on the ticket.
C) whatever Khalil would have done had he not gone to the opera.
, D) the price listed on the ticket or whatever Khalil would have done had he not gone to
the opera. - C) whatever Khalil would have done had he not gone to the opera
The cost of leaving a championship soccer match before it ends is ________, while the
cost of staying for the entire match is ________.
A) the opportunity cost of not seeing the winning goal with two minutes to go;
zero—the ticket to the match is already paid so there is no cost
B) the opportunity cost of not seeing the winning goal with two minutes to go; the
opportunity cost of what else you could have done during that time
C) zero—you don't have to pay to leave; zero—the ticket to the match is already paid
so there is no cost
D) the cost of the ticket; also the cost of the ticket - B) the opportunity cost of not seeing
the winning goal with two minutes to go; the
opportunity cost of what else you could have done during that time
*An economy that produces only corn and oats has three fields available to it, each of
which can be used to produce either corn or oats. Each field has a maximum capacity of
100 bushels of corn per period - but the three fields differ in their suitability for oat
production. Field A can produce at most 100 bushels of oats; Field B can produce at
most 50 bushels of oats, and Field C can produce at most 10 bushels of oats. The
individual production possibility frontiers of the three fields are shown. What is the
opportunity cost of a bushel of oats if it's produced in Field B?
A) 100 bushels of corn
B) 50 bushels of oats
C) 2 bushels of corn
D) 0 bushels of corn - C) 2 bushels of corn
*An economy that produces only corn and oats has three fields available to it, each of
which can be used to produce either corn or oats. Just as in the previous question, each
field has a maximum capacity of 100 bushels of corn per period - but the three fields
differ in their suitability for oat production. The individual production possibility frontiers
of the three fields are shown above Question #12. Refer to those graphs to
figure out which of the PPFs shown when it uses all three fields?
A) PPFA
B) PPFB
C) PPFC
D) PPFD - B) PPFB
*A tropical island economy has 100 workers. 60 of those workers can produce either 1
fish per day or 1 coconut per day. The other 40 workers can each produce 1 fish per
day, but none of them can produce any coconuts. Which of the graphs shown is an
accurate representation of the island's production possibility frontier?
A) Production Possibility Frontier A
B) Production Possibility Frontier B
C) Production Possibility Frontier C
D) Production Possibility Frontier D - A) Production Possibility Frontier A
A+
When a chef creates a dinner plate of food for a customer, which represents physical
capital?
A) the chef
B) the oven
C) the food ingredients
D) the chef's training and experience I think this may be a redundant answer to "A" - B)
oven
Which is not an example of a resource?
A) land
B) labor
C) capital
D) production - D) production
Which can best be considered the resources used in the production of computers?
A) money from investors
B) wages of computer engineers
C) computer engineers
D) taxes paid on the profits from the sale of the computers - C) computer engineers
Opportunity Cost - Value of the most highly-valued alternative necessarily sacrificed
You have a free coupon that can be used to buy either a taco, a burrito, or an order of
nachos. Given your tastes, the value of a taco to you is about $3.50, the value of a
burrito is $5, and the value of an order of nachos is $2. If you buy a burrito, the value of
your most highly-valued sacrificed alternative is ______________. - $3.50 - the value of
the burrito.
You have a free coupon that can be used to buy either a taco, a burrito, or an order of
nachos. Given your tastes, the value of a taco to you is about $3.50, the value of a
burrito is $5, and the value of an order of nachos is $2. The opportunity cost of buying
the burrito is
A) zero, because the coupon was free.
B) the $3.50 value you would have enjoyed by buying the taco.
C) the $3.50 value of the taco plus the $2 value of the nachos.
D) the sum of the $5 value of the burrito, the $3.50 value of the taco, and the $2 value
of the nachos. - B) the $3.50 value you would have enjoyed by buying the taco
Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is:
A) zero—the tickets were free.
B) the price listed on the ticket.
C) whatever Khalil would have done had he not gone to the opera.
, D) the price listed on the ticket or whatever Khalil would have done had he not gone to
the opera. - C) whatever Khalil would have done had he not gone to the opera
The cost of leaving a championship soccer match before it ends is ________, while the
cost of staying for the entire match is ________.
A) the opportunity cost of not seeing the winning goal with two minutes to go;
zero—the ticket to the match is already paid so there is no cost
B) the opportunity cost of not seeing the winning goal with two minutes to go; the
opportunity cost of what else you could have done during that time
C) zero—you don't have to pay to leave; zero—the ticket to the match is already paid
so there is no cost
D) the cost of the ticket; also the cost of the ticket - B) the opportunity cost of not seeing
the winning goal with two minutes to go; the
opportunity cost of what else you could have done during that time
*An economy that produces only corn and oats has three fields available to it, each of
which can be used to produce either corn or oats. Each field has a maximum capacity of
100 bushels of corn per period - but the three fields differ in their suitability for oat
production. Field A can produce at most 100 bushels of oats; Field B can produce at
most 50 bushels of oats, and Field C can produce at most 10 bushels of oats. The
individual production possibility frontiers of the three fields are shown. What is the
opportunity cost of a bushel of oats if it's produced in Field B?
A) 100 bushels of corn
B) 50 bushels of oats
C) 2 bushels of corn
D) 0 bushels of corn - C) 2 bushels of corn
*An economy that produces only corn and oats has three fields available to it, each of
which can be used to produce either corn or oats. Just as in the previous question, each
field has a maximum capacity of 100 bushels of corn per period - but the three fields
differ in their suitability for oat production. The individual production possibility frontiers
of the three fields are shown above Question #12. Refer to those graphs to
figure out which of the PPFs shown when it uses all three fields?
A) PPFA
B) PPFB
C) PPFC
D) PPFD - B) PPFB
*A tropical island economy has 100 workers. 60 of those workers can produce either 1
fish per day or 1 coconut per day. The other 40 workers can each produce 1 fish per
day, but none of them can produce any coconuts. Which of the graphs shown is an
accurate representation of the island's production possibility frontier?
A) Production Possibility Frontier A
B) Production Possibility Frontier B
C) Production Possibility Frontier C
D) Production Possibility Frontier D - A) Production Possibility Frontier A
