1.Attending college is a case where the ________________ exceeds the monetary cost.

a.budget constraint

b.marginal analysis

c.marginal utility

d.opportunity cost

2.The firm can produce 40 tables and 15 chairs. If the firm wants to produce 60 tables and 7chairs, what will be the opportunity cost of producing the additional 20 tables?

a.15

b.12

c.8

d.6

3.Along the production possibilities frontier, the most efficient point of production depicted is:

a.at the top

b.at the bottom

c.All points on the production possibilities fronties

d.in the middle

4.ndividuals who have never been the best at doing anything

a.cannot have a comparative advantage in producing any product.

b.perform all tasks at a higher opportunity costs than others in producing some product

c.can still have a comparative advantage in producing some product

d.must have an absolute advantage in at least ones task.

5.The opportunity cost of attending university is likely to include all except which of the following?

a.the cost of required textbooks

b.the income you forgo in order to attend classes

c.tuition fees

d.a massage received during the school time

6.Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

a.utility

b.the budget constrain

c.marginal analysis

d.consumption

7.The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.

a.utility

b.marginal benefits

c.opportunity cost

d.sunk cost

8.The model that economists use for illustrating the process of individual choice in a situation of scarcity is the _________________, sometimes also called the opportunity set, a diagram which shows what choices are possible.

a .consumtion set

b. budget constraint

c. original budget

d. income cap

9. As a person receives more of a good, the _______________ from each additional unit of the good declines.

a. budget constraint

b. sunk cost

c. utility

d. marginal utility

10.Economists refer to this pattern, the ___________________________________, which means that as a person receives more of a good, the additional or marginal utility from each additional unit of the good declines.\

a. law of trade-offs

b. law of diminishing marginal utility

c. the production possibilities frontier

d. law of increasing marginal utility