Question 1

The budget line shows the various incomes that an individual can earn from different jobs.

Accepted Answer

A) True 
 B)False

Question 2

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. If the consumer decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income?

Accepted Answer

A)  8 bananas
B)  4 bananas
C)  6 bananas
D)  10 bananasE) A) and D)
F) A) and C)

Question 3

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina.  Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

Accepted Answer

A)  cannot be achieved because resources are fully employed.
B)  will cost 2 units of computers.
C)  will cost 1/2 of a unit of computers.
D)  will cause some resources to become unemployed.E) C) and D)
F) A) and B)

Question 4

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Accepted Answer

A) True 
 B)False

Question 5

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

Accepted Answer

A)  0.5 of a banana.
B)  0.8 of a banana.
C)  1 banana.
D)  2 bananas.E) B) and D)
F) None of the above

Question 6

According to economists, economic self-interest

Accepted Answer

A)  is a reality that underlies economic behavior.
B)  has the same meaning as selfishness.
C)  means that people never make wrong decisions.
D)  is usually self-defeating.E) A) and B)
F) A) and D)

Question 7

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Accepted Answer

A) True 
 B)False

Exam 1: Limits, Alternatives, and Choices

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Correct Answer
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Correct Answer
verified

According to economists, economic self-interest

Correct Answer
verified

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Correct Answer
verified

The budget line shows the various incomes that an individual can earn from different jobs.

Correct Answer
verified

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

Correct Answer
verified

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

Correct Answer
verified

Exam 1: Limits, Alternatives, and Choices

-Marginal analysis is the valuation of insignificant or small benefits from doing things.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to economists, economic self-interest

Correct AnswerverifiedShow Answer

Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.

Correct AnswerverifiedShow Answer

The budget line shows the various incomes that an individual can earn from different jobs.

Correct AnswerverifiedShow Answer

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. For this consumer, the opportunity cost of buying one more apple is

Correct AnswerverifiedShow Answer

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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