Microeconomics Exam 1
The U.S. federal government spends $7 billion on airport security annually. It would be worth spending
more if - Answer-the benefits of the additional safety are greater than the additional costs
Microeconomics focuses principally on - Answer-how individuals choose among scarce goods
Which of the following is a positive statement? - Answer-if we provide a basic income to all living
people, world hunger will decrease
You and your friend decide to live in the wild for a year. Your friend has a small comparative advantage
at hunting and you have a small comparative advantage at fishing. Therefore, - Answer-the two of you
will eat better if your friend does all the hunting and you do all the fishing
Suppose global warming leads to improved avocado harvest (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Given the improved avocado harvests, what will happen to the amount of avocado dip that consumers
purchase? - Answer-it will rise
Suppose global warming leads to improved avocado harvests (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Given the improved avocado harvests, what will happen to the price of salsa (a substitute for avocado
dip)? - Answer-it will fall
, Suppose global warming leads to improved avocado harvests (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Many consumers eat raw avocado in a spinach salad. Given the improved avocado harvests, what will
happen to the price of spinach? - Answer-it will rise
Douglas entered the Air Force's Officer Candidate School (AFOCS) after graduating from Clemson. Had
he not entered the AFOCS, Douglas would have attended business school (he was accepted by Duke).
Had he not been accepted by either the Air Force or Duke, he would have gone to work for his father.
The opportunity cost of his going to AFOCS was - Answer-attending Duke Business School
Your very smart and athletic friend turns down a football scholarship at Clemson to play minor league
baseball for the Braves. As economists, we can conclude that - Answer-None of the above
This is Billy's total benefit schedule for ice cream cones on a hot afternoon. Think "at the margin" and
answer the next question.
Quantity: 1: $15
Quantity: 2: $25
Quantity: 3: $33
Quantity: 4: $30
Quantity: 5: $25
Billy will consume a third ice cream cone as long as the marginal cost is - Answer-less than $8
This is Billy's total benefit schedule for ice cream cones on a hot afternoon. Think "at the margin" and
answer the next question.
Quantity: 1: $15
The U.S. federal government spends $7 billion on airport security annually. It would be worth spending
more if - Answer-the benefits of the additional safety are greater than the additional costs
Microeconomics focuses principally on - Answer-how individuals choose among scarce goods
Which of the following is a positive statement? - Answer-if we provide a basic income to all living
people, world hunger will decrease
You and your friend decide to live in the wild for a year. Your friend has a small comparative advantage
at hunting and you have a small comparative advantage at fishing. Therefore, - Answer-the two of you
will eat better if your friend does all the hunting and you do all the fishing
Suppose global warming leads to improved avocado harvest (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Given the improved avocado harvests, what will happen to the amount of avocado dip that consumers
purchase? - Answer-it will rise
Suppose global warming leads to improved avocado harvests (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Given the improved avocado harvests, what will happen to the price of salsa (a substitute for avocado
dip)? - Answer-it will fall
, Suppose global warming leads to improved avocado harvests (avocado trees love warm weather). Use
this as the starting point to answer the next question. Draw the curves!
Many consumers eat raw avocado in a spinach salad. Given the improved avocado harvests, what will
happen to the price of spinach? - Answer-it will rise
Douglas entered the Air Force's Officer Candidate School (AFOCS) after graduating from Clemson. Had
he not entered the AFOCS, Douglas would have attended business school (he was accepted by Duke).
Had he not been accepted by either the Air Force or Duke, he would have gone to work for his father.
The opportunity cost of his going to AFOCS was - Answer-attending Duke Business School
Your very smart and athletic friend turns down a football scholarship at Clemson to play minor league
baseball for the Braves. As economists, we can conclude that - Answer-None of the above
This is Billy's total benefit schedule for ice cream cones on a hot afternoon. Think "at the margin" and
answer the next question.
Quantity: 1: $15
Quantity: 2: $25
Quantity: 3: $33
Quantity: 4: $30
Quantity: 5: $25
Billy will consume a third ice cream cone as long as the marginal cost is - Answer-less than $8
This is Billy's total benefit schedule for ice cream cones on a hot afternoon. Think "at the margin" and
answer the next question.
Quantity: 1: $15
