Micro exam 1

when calculating the opportunity cost of college, which of the following should your probably not include?
A. the cost of tuition
B. the income you would have earned had you not gone to college
C. the cost of books required for college classes
D. the cost of rent for your off-campus apartment

which of the following proases best captures the notion of efficiency?
A. equitable outcome
B. equal distribution
C. minimum waste
D. absolute fairness

high school athletes who skip college to become professional athletes
A. usually do so because they cannot get into college
B. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high school athletes
C. understand that the opportunity cost of attending college is very high
D. obviously do not understand the value of a college education

after much consideration, you have chosen Cancun over Ft. Lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision?
A. the marginal benefit of going to Cansun increases
B. the marginal benefit of going to Ft. Lauderdale decreases
C. the marginal cost of going to Fe. lauderdale decreases
D. the marginal cost of going to Cancun decreases

if the united states decides to trade with mexico, we know that
A. mexico will benefit, but trade with a less developed country could not benefit the united states
B. it will not benefit mexico because workers in the united states are more productive
C. mexico and the united states can both benefit
D. it will not benefit either country because their cultural differences are too vast

the opportunity cost of obtaining more of one good is shown on the production possibiliies frontier as the
A. market price of the additional amount produced
B. amount of resources that must be devoted to its production
C. amount of the other good that must be given up
D. number of dollars that must be spent to produe it

which of the following events could shift the demand curve for gasoline to the left?
A. the income of gasoline buyers rises, and the fasoline is a normal good
B. public service announcements run on television encourage people to walk or ride bicycles instead of driving cars
C. the proce of gasoline rises
D. the income of gasoline buyers falls, and gasoline is an inferior good

the opportunity cost of this economy moving from point A to point B is
A. 20 toasters
B. 10 toothbrushes
C. 0 toasters
D. 10 toasters

if this economy devotes all of its resources to the production of tooth brushers, then is till produce
A. 70 toothbrushes and 0 toasters
B. 0 toothbrushes and 40 toasters
C. 35 toothbrushes and 20 toasters
D. 70 toothbrushes and 40 toasters

assume that greece has a comparative adveantage in fish and germany has a comparative adveantage in cars. also assume that germany has an absolute advantage in both fish and cars. if these two countrises specialize and trade so as to maximize the benefits of specialization and trade, then
A. the two countries combined output of both goods will be higher than it would be in the absence of trade
B. greece will produce more fish than it would produce in the absence of trade
C. germany will produce more cars than it would produce in the absence of trade
D. all of the above

if the demand for a product increases (i.e., the demand curve shifts right), then we would expect
A. equilbrium price to increase and equilbrium quantity to decrease
B. equilbrium price to decrease and equilbrium quantity to increase.
C. equilbrium price and equilbrium quantity both to increase.
equilbrium price and equilbrium quantity both to decrease.

mallory decides to spend three hours working overtime rather than watching a vider with her friends. shie earns $8 an hour. her opportunity cost of working is
A. nothing, since she would have recieved less than $24 of enjoument from the video
B. the enjoyment she woulld have recieved had she wathed the video
C. the $24 she earns working
D. the $24 minus the enjoyment she would have recieved from watching the video