Hi,

These are MicroEconomics Questions. Fairly simple.

Can you please show the correct step by step solution for each question including the mcqs. It would help a lot if you explain each question neatly.

Thank you.

1. Lamya has a comparative advantage in writing a term paper if she A. can write a paper faster than the other students in class. B. has an absolute advantage in writing a term paper. C. always earns an A on her papers. D. has a low opportunity cost for writing a term paper. Ghadah and Maryam are lost in the jungle, where the only things to eat are mangoes and fish. Ghadah can gather mangoes faster than Maryam and can also catch more fish per hour than can Maryam. Therefore, A. Ghadah should specialize in fishing because it is harder than gathering mangoes, and Maryam should specialize in gathering mangoes. B. Ghadah should strike out on her own, because Maryam reduces their combined productivity. C. Maryam should specialize in the activity for which she has a comparative advantage. D. Ghadah should specialize in the activity for which she has an absolute advantage. Point A on a linear production possibilities curve represents a combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The opportunity cost of a cup of cappuccino is A. 3 coffees B. 9 coffees C. 1/3 of a coffee D. 6 coffees 4. In a two-person, two-good economy, the benefits of labor specialization will be larger when A. one person has an absolute advantage in both goods. B. neither person has an absolute advantage. C. the difference in their respective opportunity costs are small for both goods. D. there is a large difference in their opportunity costs. Amr and Badr comprise a two-person economy. Their hourly rates of production are shown below. Computers : G Calculators 120 The opportunity cost of making an extra calculator for Amr is and for Badr it is A. 0.10 computers; 0.05 computers B. 10 computers; 6 computers C. 1 computer; 0.5 computers D. 0.6 computers; 1.2 computers Amr and Badr have 1 hour each. Suppose Amr and Badr begin at the point of 16 computers and 0 calculators. If they wish to have 14 computers and 40 calculators, then Amr will spend and Badr will spend A. 1 hour on computers; 40 minutes on computers and 20 minutes on calculators B. 1 hour on computers; 20 minutes on computers and 40 minutes on calculators C. 30 minutes on each; 30 minutes on each D. 45 minutes on computers and 15 on calculators; 1 hour on calculators Vviarheags Units of Medcal Cane 7. Refer to the figure above. Which of the following is true given the production possibilities shown? A. Point C is more efficient than Point B because at Point C the opportunity cost of another warhead is lower than at Point B. B. Point B is the most efficient feasible point because it represents specialization in warheads. C. Point F is the most efficient feasible point because it represents specialization in medical care. D. Points B, C, and E are equally efficient. 8. Which of the following is NOT a characteristic of a market in equilibrium? A. Excess supply is zero. B. All consumers are able to purchase as much as they wish. C. Excess demand is zero. D. The equilibrium price is stable, i.e., there is no pressure for it to change. 9. You have noticed that there is a persistent shortage of teachers in an inner-city school district in your city. Based on this observation, you suspect that A. The wage for teachers at those schools is higher than at other schools in the city. B. The wage for teachers at those schools is lower than the equilibrium wage. C. There is an excess supply of teachers. D. The reservation price among teachers is lower than for other professions. 10. If both supply and demand increase simultaneously, the new equilibrium price is and the new equilibrium quantity is A. lower; lower B. lower; indeterminate C. indeterminate; higher D. higher; indeterminate 11. If supply decreases while demand increases simultaneously, the new equilibrium price is and the new equilibrium quantity is A. lower; lower B. lower; indeterminate C. indeterminate; higher D. higher; indeterminate Price of a cup of coffee $3.50 3.60 New Supply 2.50 2:00 1.50 1.00 5.50 10 20 30 40 50 60 70 Cups sold in an hour 12. Refer to the figure above. What might cause Supply to shift from the Original Supply to the New Supply? A. A storm in South America wipes out the entire coffee crop. B. New technology reduces the amount of coffee beans necessary to make a good-tasting pot of coffee. C. A news report that coffee consumption greatly increases productivity. D. An increase in the price of tea.13. Consider the following demand curves for cheese for Salem and Omar: Salem: P= 150 5Q;4 Omar: P=100- 2Qo a) Find out the aggregate demand. b) Find the price elasticity of demand for Salem when P=10. 14. Tom and Jerry are friends who can produce only 2 goods, oranges and apples. Tom can produce 30 oranges and 0 apples, 20 apples and 0 oranges or any linear combination of the two points. Jerry can produce 20 oranges and 0 apples, 20 apples and 10 oranges or any linear combination of the two points. After that Jerry gets tired and from that point onwards every unit of apple costs him 2.5 oranges. a) Suppose Tom and Jerry are producing only oranges. If they have to produce 1 apple, who should produce it? Explain. b) Suppose Tom and Jerry are producing only apples. If they have to produce 1 orange, who should produce it? Explain