UA EC 110 - QUIZ 1 SAMPLE MATERIALS (7 pages)

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QUIZ 1 SAMPLE MATERIALS



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QUIZ 1 SAMPLE MATERIALS

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Pages:
7
School:
University of Alabama
Course:
Ec 110 - Prin of Microeconomics

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QUIZ 1 MATERIALS ANSWERS TO MULTIPLE CHOICE QUESTIONS APPEAR AT THE END OF THIS SAMPLE QUIZ NO ANSWERS ARE PROVIDED FOR THE PROBLEMS PART A 1 For Italy the opportunity cost incurred when 6 cheeses are produced is 8 watches For Switzerland the opportunity cost incurred when 10 cheeses are produced is 50 watches Which country has a comparative advantage in the production of cheese A Switzerland B Italy C Both have the comparative advantage in the production of cheese D Neither have the comparative advantage in the production of cheese 2 Having an absolute advantage A means specializing in the production of only one good B means having higher opportunity costs than the trading partner C means being able to produce more of a product with same amount of resources than another producer D means having lower opportunity costs than the trading partner 3 Justin decides to spend an additional hour working overtime rather than playing football with his friends He earns 6 an hour for his hour s work His opportunity cost is A the 6 he earns B the enjoyment he would have received playing football with his friends C the 6 minus the enjoyment he would have received from playing football with his friends D nothing since he would have received less than 6 worth of enjoyment from playing football 4 When a production possibilities frontier is bowed outward as more of one good is produced its opportunity cost A increases B decreases C remains constant D cannot be predicted 5 For a society a good is not scarce if A all members of society can have all they want of it B at least one individual in society can obtain all he or she wants of the good C firms are producing at full capacity D those who have enough income can buy all they want of the good 6 Which of the following is true of households in the circular flow model A They own the factors of production B They choose the quantity of goods and services to buy C They interact in the factor markets and the goods market D All of the above



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