ECN 211 - Exam 1 questions with correct answers

opportunity cost Correct Answer-whatever must be given up to obtain some item calculating opportunity cost Correct Answer-what you give up / what you get The table above shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 800 bushels to 1200 bushels? (Wheat: ) Correct Answer-500 bushels of wheat When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good _________ as more of the good is produced. Correct Answer-Increase Utility Correct Answer-Ability or capacity of a good or service to be useful and give satisfaction to someone. Microeconomics Correct Answer-the study of how households and firms make decisions and how they interact in markets Macroeconomics Correct Answer-the study of economy-wide phenomena, including inflation, unemployment, and economic growth Which of the following would likely be studied by a microeconomist rather than a macroeconomist? Correct Answer-the effect of gas prices on the profitability of snowplow companies in New England