1.The elements of the economizing problem are:

a.the necessity of making choices because economic wants are greater than economic means.

b.that individuals are unable to rationally allocate resources.

c.that people's incomes often outpace their wants.

d.how to distribute resources equally to everyone in society.

2.Assume that David receives a $20 credit at a pet store, where he buys only dog food and flea medicine. If the price of a dog food is $4 and the price of flea medicine is $2, then David

a.should only buy flea medicine.

b.should only buy dog food.

c.can buy 5 units of dog food or 10 units of flea medicine.

d.can buy 5 units of dog food and 10 units of flea medicine with his $20 credit.

3.What two main characteristics separate the difference between economic systems?

a.The technology used in production, and the quantity and quality of natural resources.

b.The political structure of the economy, and whether an economy faces scarcity.

c.Who owns the factors of production, and how to coordinate economic activity.

d.How goods are produced, and who gets those products.

11.What relationship is exemplified by the circular flow model?

a.Price stability is likely to remain stable over time.

b.The shares of total resource income going to wages, rent, interest, and profit will tend to equalize.

c.Unfortunate circumstances in one part of the economy are isolated in their effect.

d.disruptions in one market can flow into other markets, increasing the impact on the economy.

13.The convex shape of a nation's production possibilities curve is due to:

a.people's wants are virtually unlimited.

b.resources which are not equally efficient in producing every good.

c.the fact that resources are scarce.

14.

Refer to the table. If the economy is producing at position C, the opportunity cost of the 20th unit of consumer goods will be: A B C D E F Capital 10 8 6 4 2 0 Goods Consumer O 10 18 24 28 30 GoodsRefer to the table. A total output of 6 units of capital goods and 16 units of consumer goods: A B C D E F Capital 10 8 6 4 2 O Goods Consumer 0 10 18 24 28 30 GoodsRefer to the table. For this economy to produce a total output of 8 units of capital goods and 12 units of consumer goods it must: A B C D E F Capital 10 8 6 4 2 O Goods Consumer 0 10 18 24 28 30 GoodsRefer to the table. The law of increasing opportunity costs is reflected in this table by: A B C D E F Capital 10 8 6 4 2 0 Goods Consumer 0 10 18 24 28 30 GoodsRefer to the diagram. Points A, B, C, D, show: A 350 Plant 3 300 B Plant 2 250 200 C Pairs of skis per month 150 Production Plant 1 100 possibilities curve for Alpine Sports 50 D 0 50 100 150 200 250 300 350 Snowboards per monthRefer to the diagram. If there is movement from point A to point D, then the production of: A 350 Plant 3 300 B Plant 2 250 200 C Pairs of skis per month 150 Production Plant 1 100 possibilities curve for Alpine Sports 50 D 0 50 100 150 200 250 300 350 Snowboards per monthRefer to the above diagram for athletic shoes. If the current output of shoes is Q3, then: Marginal Cost Marginal Cost (Dollars) Marginal Benefit and Marginal Benefit 0 Q 1 Q2 Q3 Quantity of Shoes\fRefer to the tables below. The domestic opportunity cost of: Prada's Production Possibilities A B C D E Wings 80 60 40 20 Burgers O 5 10 15 20 Delba's Production Possibilities A B C D E Wings 240 180 120 60 0 Burgers O 10 20 30 40Refer to the tables below. Delba: Prada's Production Possibilities A B C D E Wings 80 60 40 20 Burgers 0 5 10 15 20 Delba's Production Possibilities A B C D E Wings 240 180 120 60 0 Burgers 10 20 30 40Refer to the table expressing the marginal and total utility for a good. The value for K is: Units used Total Utility Marginal Utility O 0 H 20 2 35 L 3 K 10 4 40Refer to the table expressing the marginal and total utility for a good. The value for L is: Units used Total Utility Marginal Utility O H 20 2 35 3 K 10 4 40 LRefer to the table expressing the marginal and total utility for a good, the data illustrate the: Units used Total Utility Marginal Utility O 0 H 20 2 35 3 K 10 4 40