Answer all the questions

What do economists mean by opportunity cost?

A the value of the best alternative use for a resource

B the equilibrium price for a scarce good

C the revenue lost by missing an economic opportunity

D the cost of allocating scarce resources

X1.2 Points to the right of the production possibility curve show combinations of goods:

A at which production is efficient.

B at which production is inefficient.

C that are unattainable given the current level of scarce resources.

D that have zero opportunity cost.

In a free market economy, allocation decisions are made by:

A the government and suppliers only.

B consumers and suppliers only.

C consumers, suppliers and the government.

D consumers only

The theory of surplus value was developed by:

A Adam Smith.

B David Ricardo.

C Karl Marx.

D John Maynard Keynes.

Which of the following events would shift the demand curve for Good X (a normal good) to the

left?

A an increase in the price of Good X

B an increase in the price of a substitute good

C an increase in the price of a complementary good

D an increase in consumer income

Prices are most volatile when:

A supply is elastic and demand inelastic.

B supply is inelastic and demand elastic.

C both supply and demand are elastic.

D both supply and demand are inelastic.

n 10.2 Let po(t) = My (0), j = 1, 2, . .., m, t 2 0. Obtain expressions for a. fr.(t, j) b. f (j) c. fr(t ). The functions called for in (a) and (c) are p.d.f.'s, and the function in (b) is a p.f. Show that T and / are independent random variables. A multiple decrement model with two causes of decrement has forces of decrement given by MY (t ) = 100 - (x + t) and 2 t