Exam 1: Limits, Alternatives, and Choices

Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina Production possibilities (alternatives) South Cantina Production possibilities (alternatives) -Refer to the above tables. The opportunity cost of the fifth unit of capital goods:

-Refer to the above table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:

(The following economy produces two products.) Production Possibilities Table -Refer to the above table. A change from possibility C to B means that:

-Refer to the above graph. Which of the following schedules correctly reflects "supply"?

Rational individuals may make different choices because their information and circumstances differ.

If the production possibilities curve were a straight downsloping line, this would suggest that:

A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the:

Which of the following statements is correct?

(The following economy produces two products.) Production Possibilities Table -Refer to the above table. In moving from possibility C to D, the cost of a unit of steel in terms of a unit of wheat is:

-In the above diagram the vertical intercept and slope are:

-The above data suggest that:

-The linear equation for line (3) on the above graph is:

-Refer to the above diagram. Which line(s) show(s) a negative relationship between x and y?

Which of the following statements, if any, is correct for a nation which is producing only consumption and capital goods?

If price (P) and quantity (Q) are directly related, this means that:

The economic perspective used in customer decision making at fast-food restaurants is reflected in:

-Refer to the above table. As compared to production alternative D, the choice of alternative C would:

Through specialization and international trade a nation:

Opportunity cost is best defined as:

One of the basic economic defences of economic growth rests on the conclusion that: