1) Suppose that in a week I can earn $1000 or finish 5 household tasks, but my partner can earn $1200 or finish 4 household tasks. We both have constant opportunity costs so our PPC's are straight lines. When we were single, I would earn $600 and finish 2 household tasks and she earns $300 and finishes 3 household tasks. Which of the following is true?

A)If we specialize according to absolute advantage then we will earn more income and finish more household tasks.

B)If we specialize according to comparative advantage then we will earn more income and finish more household tasks.

C)If we specialize according to comparative advantage then I will earn income and my partner will focus on the household tasks.

D)If we specialize counter to comparative advantage then our income will increase.

2) In deciding how best to spend my time, the equi-marginal principle suggests that I should choose the activity, or activity levels, such that

A)the marginal utility per hour, derived from the last hour of each of the activities is maximized

B)the marginal utility per hour, derived from the last hour of each of the activities is equal

C)the total utility derived from each activity is equalized

D)the total utility derived from the last hour of each of the activities is equal

3) How would you represent the installation of additional red-light cameras in school zones using a Demand/Supply graph, which measures the incidence of speeding on the horizontal axis?

A)Demand shifts left

B)Demand shifts right

C)Supply shifts left

D)Supply shifts right

4)As the essay deadline gets closer, we would expect the equilibrium quality of the essay to ____ and the opportunity cost of achieving that quality to ____

A)rise; fall

B)rise; rise

C)fall; fall

D)fall; rise

5) When thinking about the market for the exchange of sex, the development of cheaper and better AI sex robots would be modelled using a ______ of/for sex from other humans

A)more inelastic demand curve

B)more elastic supply curve

C)more elastic demand curve

D)more inelastic supply curve

6) An increase in the social value of virginity coupled with an increase in the social value of promiscuity would together lead to _____ in/on the exchange price of sex.

A)An increase

B)A decrease

C)No change

D)An ambiguous effect

7) Early heterosexual dating sites had similar characteristics to the familiar 'tragedy of the commons' problem. Which of the following was an important characteristic of this problem?

A)Free messaging meant that the quality and quantity were high

B)Male signals were too cheap

C)Limited internet bandwidth was a shared resource that was being over-exploited D) There was a lop-sided gender distribution of users

8) Consider a scenario where prostitutes who offer more unique and unusual services decide to limit their working hours. Which of the following statements is most likely true about this scenario?

A)Raising the price would cause a sharp drop in customers

B)The number of customers and revenue would remain relatively unchanged

C)The change in price would be more dramatic than the change in quantity

D)Revenues would decrease in the short-run but be relatively unaffected in the long-run

9) Which of the following is not an important characteristic of Gary Becker's model of New Home Economics from the 1950-1970's?

A)Division of Labour

B)Economies of Scale

C)Utility Maximization

D)Complementary Consumption

10) If I had asked my wife on our first date: "You're so great. Why are you still single?" it would be part of an example of which type of economic problem associated with markets failing to produce efficient outcomes?

A)Moral Hazard

B)Tragedy of the Commons

C)Adverse Selection

D)Inferior Goods

E)Externalities