15. Figure 1 Widgets 10 9 A C 7 B 6 Gadgets Figure 1 shows that the nation can produce: (a) 8 widgets and 7 gadgets if it uses its resources efficiently (b) 5 widgets and 8 gadgets (c) 10 widgets and 2 gadgets. (d) 7 widgets and 6 Gadgets. 16. If the nation produces 5 gadgets and 6 widgets, it is most likely: (a) overutilizing its resources (b) operating at full employment (c) underutilizing its resources. 17. To get to point C, the nation must: (a) increase national saving (b) invest in consumer products (c) fight some wars (d) produce more babies. 18. The marginal rate of transformation (slope) from A to B must be: (a) 0.5 (b) 1 (c) 2 (d) 3. 19. The equilibrium price and quantity of a good are $10 and 100 units respectively. After a government imposed a-$10 per unit tax, consumers reduced their consumption to 50 units and paid $15 per unit. It is most likely that the burden of the tax on sellers will be: (a) $1o (b) $4 (c) $5 (d) $8 (e) $7 20. Referring to Question 19, it is most likely that the deadweight loss resulting from the tax will be (a) $100 (b) $250 (c) $300 (d) $40021. Question 19 suggests that the potential tax revenue of the government will be: (a) $300 (b) $500 (0) $450 ((1) $400 22. Suppose consumers were willing to pay $20 before the tax, what would have been the consumer surplus before the tax? (a) $500 (b) $1,000 (0) $1,500 ((1) $2,000 23. Imagine that the demand function for Wheaties could be specied as follows: Qw: 30 +3PK, what is the cross-price elasticity of demand for Wheaties when the per unit price of Kellogg's is $2? (a) 1.5 (b) 0.17 (c) 2.3 (d) .5 (e)0.67 24. Wheaties and Kellogg's must be: (a) substitute goods (b) complementary goods (c) unrelated goods ((1) inferior goods