1/ Consider the following situation. A rational, self-interested student decides whether to purchase a textbook required for a particular class based on all of the following, except

Group of answer choices :

a/ Whether the textbook has an attractive dust jacket.

b / The price of the textbook.

c/ Whether he can borrow the textbook from his friends.

d/ His limited resources, such as income and time.

2/ To which of the following household-type(s) does the phrase "unlimited wants and limited resources" apply?

I. A low-income household II. A middle-income household III. A high-income household

Group of answer choices :

a/ II only

b/ I only

c/ Both I and II, but not III

d/ I, II, and III

3/ Specialization and comparative advantage

Group of answer choices :

a/ Lead to greater output even if you can do everything better than someone else.

b/ Lead to international trade and overall gains for the nations involved.

c/ Lead to greater productivity.

d/ All of the above.

4/ Italy and India are countries that trade with each other. If Italy has a comparative advantage in cell phones and India has a comparative advantage in hats, which of the following is a correct statement about the effects of trade between these nations?

Group of answer choices :

a/ Italy will lose jobs in the cell phone industry.

b/ Both countries are likely to be better off, and world production will increase.

c/ Both countries will lose jobs through trade and be worse off.

d/ There will be a net loss of employment in India

5/ Two countries, A and B, produce both apples and bananas. The PPF for Country A is relatively flat when graphing apples on the vertical axis and bananas on the horizontal axis. Which of the following is likely true?

Group of answer choices:

a/ Country A has a comparative advantage in apples.

b/ Country B has a comparative advantage in apples.

c/ Country A has a comparative advantage in bananas.

d/ Neither has a comparative advantage.

6/ Consider a society that must choose between making automobiles and tractors. The quantity of automobiles produced is graphed on the vertical axis on the PPF. What happens to the opportunity cost of making tractors as society moves to the right and down the curve?

Group of answer choices

a/ The opportunity cost stays the same.

b/ The opportunity cost decreases substantially.

c/ The opportunity cost decreases slightly.

d/ The opportunity cost increases.

7/ Which of the following will cause the supply curve to move outward, all else being equal?

Group of answer choices :

a/ A rise in prices

b/ A rise in interest rates

c/ A fall in the costs of production

d/ A rise in the population

8/ If goods A and B are substitutes and the price of good A falls ________.

Group of answer choices

a/ the demand curve for good A shifts to the right

b/ the demand curve for good B shifts to the left

c/ the demand curve for good B shifts to the right

d/ the demand curve for good A shifts to the left

9/ Suppose there is a drought in Nebraska that affects the state's corn crop. The likely impact of the drought on the market for corn will be ________.

Group of answer choices :

a/ a leftward shift of the supply curve

b/ a leftward shift of the demand curve

c/ a simultaneous leftward shift of the supply and demand curves

d/ a rightward shift of the supply curve

10/ Which of the following occurs when the price of milk rises?

Group of answer choices

a/ There is movement downward along the demand curve.

b/ The demand curve shifts to the right.

c/ The demand curve shifts to the left.

d/ There is movement upward along the demand curve.