1.Which of the following is an example of a non-rival good? (2 points)

	Fireworks for everyone in their sightline
	A toll road
	A glass of water
	Seats at a movie theater
	An unclaimed spot on a beach

2. The government of Country Y does not regulate businesses in any way. It does not set minimum prices for any goods or regulate wages. It allows individuals to make independent decisions that impact the economy. What economic system best describes Country Y?

	Command
	Free enterprise
	Market
	Mixed
	Indeterminate

3. On a production possibilities curve (PPC), what does an outward shift imply? (2 points)

	There has been an increase in technology and/or resources.
	Government intervention has introduced alternative inputs.
	Inputs and outputs have balanced out to create an efficient market.
	Trade has increased to allow more resources to enter the market.
	There has been an increase in both supply and demand.

4. County A has an absolute advantage in widget products. This means that County A (2 points)

	can produce widgets at a lower opportunity cost than any other producer
	can produce widgets at a higher opportunity cost than any other producer
	can produce a lower quantity of widgets than any other producer if given the same quantity of resources
	can produce the same quantity widgets than any other producer if given the same quantity of resources
	can produce a higher quantity of widgets than any other producer if given the same quantity of resources

5. County A has an absolute advantage in widget products. This means that County A (2 points)

	can produce widgets at a lower opportunity cost than any other producer
	can produce widgets at a higher opportunity cost than any other producer
	can produce a lower quantity of widgets than any other producer if given the same quantity of resources
	can produce the same quantity widgets than any other producer if given the same quantity of resources
	can produce a higher quantity of widgets than any other producer if given the same quantity of resources

6. Frank can grow 15 bushels of tomatoes and 5 bushels of corn in one growing season. Mary can grow 15 bushels of tomatoes and 15 bushels of corn. In which crops should Frank and Mary specialize? (2 points)

	Specialization would not benefit Mary or Frank.
	Neither Frank nor Mary should specialize in tomatoes.
	Frank should specialize in tomatoes and Mary in corn.
	Mary and Frank should both specialize in tomatoes and corn.
	Frank and Mary can benefit equally from specialization in corn.

7. Country Q can produce 15 pairs of socks and 5 belts in one hour. Country Z can produce 20 pairs of socks and 20 belts in one hour. Which of the following terms of trade would be mutually beneficial to both countries? (2 points)

	1 belt for 2 pairs of socks
	1 pair of socks for 2 belts
	2 belts for 2 pairs of socks
	1 belt for 5 pairs of socks
	5 pairs of socks for 15 belts

8. Which of the following describes a situation in which total costs and benefits are the only viable evaluation to inform a decision? (2 points)

	Some resource costs are unknown.
	A good or service cannot be subdivided into increments or additional units.
	The opportunity cost remains constant.
	There are no implicit benefits.
	An accountant identifies steep explicit costs.

9. Johnson won a free ticket to tour around the world in one year, but he will have to resign from his job. Which of the following is correct if he does cost-benefit analysis? (2 points)

	The tour provides only benefits.
	The only cost will be paying for food.
	There is no opportunity cost to be considered.
	The cost of the lost income is equal to the benefit of the free ticket.
	The result may lead to a sub-optimal choice if opportunity costs are not considered.

10. If ceteris paribus, a firm's production costs decrease, what should happen to its quantity produced? (2 points)

	It will decrease along with total benefit.
	It will decrease.
	It will increase.
	It will be unaffected.
	Insufficient data to determine

11. Below is the total benefit Michelle estimates she would get for eating handfuls of dried cranberries in one sitting.

Number of Handfuls	Total Benefit (dollars)
1	$2.00
2	$3.50
3	$4.50
4	$5.00
5	$5.25
6	$5.00
7	$4.00

If a handful of dried cranberries costs $0.50, what is the optimal number of handfuls for Michelle to eat? (2 points)

	2
	3
	4
	5
	6

12.A consumer purchases a vehicle that gets very few miles per gallon and realizes that a significant portion of his income is going to gasoline. Given only this information, which of the following statements accurately reflects marginal analysis? (2 points)

	The consumer should ignore the cost of purchasing the vehicle because the money has already been spent.
	The consumer should consider getting adequate benefit for the purchase price of the vehicle.
	The consumer should evaluate whether it was wise to buy the vehicle.
	The consumer should stop using the vehicle as it is not providing a marginal benefit above the marginal cost.
	The consumer should give car rides to his neighbors until the marginal benefit of owning the car is greater than the marginal cost.

please help me