1. Assume China has 10,000 workers. Suppose that each Chinese worker produces either 30 pairs of boots or 10 software per month. Suppose that half of Chinese workers produce boots and half produce programs. What quantities of boots and software does China produce? Are these production combinations efficient?Select one

• :a. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are efficient
• .b. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are efficient
• .c. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are not efficient
• .d. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are not efficient.

2. All the following shift the supply of plastic eyeglasses to the left exceptSelect one:

a. An advance in a cost-saving technology used to manufacture the frames

.b. A decrease in the number of suppliers

.c. Manufacturers expectation of higher eyeglasses prices in the future.

d. An increase in the price of zylonite used in producing plastic frames.

3. A buyer has purchased three pairs of shoes. The fourth pair costs $90 and the buyer estimated that it is worth at least 90 dollars in terms of marginal benefits. Which of the following statements is correct?Select one:

a. The buyer should not buy the fourth pair as the marginal cost of the fourth pair is high

.b. The buyer should buy the fourth pair as buying the fourth pair will increase total benefits by less than total costs.c. The buyer should not buy the fourth pair as buying the fourth pair will increase total costs by more than total benefitsd. The buyer should buy the fourth pair as the marginal benefit is at least equal to the marginal cost

4. An insurance company is looking to hire a new consultant. In the circular flow diagram, this transaction will take place in theSelect one

:a. Product market.

b. Public market.

c.Resource markets.

d.Foreign Exchange market

5.In the long run:Select one:

a. Nominal variables and specifically prices are flexible and markets clear.

b. Nominal variables and specifically prices are sticky and markets clear

.c. Nominal variables and specifically prices are sticky, and markets do not clear.

d. Nominal variables and specifically prices are flexible, and markets do not clear.

6. Your mother gives you a $100 bill. If you choose to use the $100 to buy a ticket to attend a concert. On your way back home, you buy a dinner for $50. The opportunity cost of attending the concertSelect one:

a. $100 (because you could have used the $100 to buy other things)

.b. $150 (because you could have used the $100 to buy other things, plus the cost of your dinner) plus the value of your time spent.c. nothing, because you found the money.

d. $100 (because you could have used the $100 to buy other things) plus the value of your time.

7. The demand schedule is:Select one

:a. a table that shows the price that suppliers are willing to sell

.b. a circle showing the unlimited desires of consumers.

c. a table that lists the quantity for a good demanded throughout the economy at many different prices.

d. a graphic showing when markets are open and closed.

8. 20 French workers can produce 100 programs a year whereas 20 Venezuelan workers can produce 80 programs per year. 20 French workers can produce 200 liters of milk a year, whereas 20 Venezuelan workers can produce 100 liters of milk a year. Which statement is true? (Clue: drawing a table gathering the information above for both goods and countries can be helpful.)Select one:

a. The opportunity cost of one program in terms of liters of milk is 1.25 in France and 2 in Venezuela. The opportunity cost of one liter of milk in terms of programs is 0.8 in France and 0.5 in Venezuela.

Refer to the graphic below. A price of $20 in this market will result in: Supply $60 40 Price 20 Demand 50 100 150 200 Quantity Select one: O a. A surplus of 100. O b. A shortage of 100. c. The intervention of the government and some price controls. O d. Equilibrium of the market.Consider the tolowing Production Possibilities Frontier. 500 Foods ltilt-er a pen'od, an economy moves from Ato B. Which otthe following could account for this change and how the PPF looks lite? Select one: a. The opportunity cost of machines in terms of foods is not constant and the eoonorny is producing more of both goods. I}. The opportunity cost of machines in terms of foods is increasing and the economy is operating below its productive potential for all goods. c. The opportunity cost of machines in terms of foods is decreasing and the ination rate o1 mach'nes must have fallen. 0000 d. The opportunity cost of machines in terms of foods is constant and consumers are more licely to buy machines