Please answer each question with the correct answers (answers marked in images are incorrect) then provide explanations for the correct answers. Thank You!

e that is best in each case and then fill in the co Questions 1-2 are based on the production possibilities curve depicted below. PI GOODS CAPITAL X LY W Z 3. Th su CONSUMER co GOODS $2 g 1. Given the production possibilities curve above, which of the following represents a movement C from efficiency to inefficiency? A A) Point X to point W (B) Point X to point Z (C) Point Y to point Z 4. (D) Point W to point Z (E) Point V to point Y 2. Based on a comparison of points X, Y, and Z, the opportunity cost of an additional consumer good is (A) highest at point X (B) highest at point Y C (C) highest at point Z (D) lowest at point Y E the same at points X, Y, and Z5. Which of the following will most likely happen in the market for good X if the price of good X 8. Which o decreases? single-p competi (A) The supply of good X will decrease. (B) The demand for good X will increase. (A) Pri (C) The quantity demanded for good X will B increase. (C) Pr ( D) O (D) The demand will decrease and the supply will ( E) T increase. The quantity supplied for good X will 9. Supp increase. indu aver 6. Let MU, be the marginal utility of a sandwich, aver MU, be the marginal utility of a hot dog, P, be the occ price of a sandwich, and Ph be the price of a hot (A dog. When the price of the goods is zero, Pat eats B a sandwich. When Pat has to pay, she eats a hot dog. When Pat has to pay, which of the following B B is necessarily true? (A) MUS = MU, = PS = Ph B (MU, / PS) > (MU, / Ph) (C) PS Ph 10. (E) MU = 0 7. Assume that labor is the only variable input. If a firm's short-run marginal cost is increasing as output rises, which of the following must be true? (A) Average product of labor is constant. C (B) Average product of labor is increasing. (C) Marginal product of labor is greater than average product of labor. (D) Marginal product of labor is decreasing. (E) Total product of labor is decreasing.9. Suppose that price in a perfectly competitive industry decreases and it is now below minimum average total cost but remains above minimum average variable cost. Which of the following will the occur in the short run? (A) New firms will enter the industry. (B) Firms will increase output so that marginal B revenue equals the new price. (C) Firms will produce the output at which average total cost is at a minimum. (D) Firms will produce the output at which marginal cost equals the new price. (E) Firms will not produce at all, since they will be unable to cover all their costs. 10 Whi11. Which of the following will most likely lead 13. Assume a perfectly competitive labor market. to zero economic profits? Which of the following correctly describes the (A) Price floors individual firm's demand curve for labor and the B Price discrimination market demand curve for labor? C) External costs Firm's Demand Market Demand "D) Free entry and exit of firms C Curve for Labor Curve for Labor E) External benefits (A) Downward sloping Downward sloping 12. A perfectly competitive firm hires three workers B) Downward sloping Horizontal in a perfectly competitive labor market. The Cy Horizontal Downward sloping D) Horizontal Horizontal marginal products of the three workers are (E) Horizontal Upward sloping shown in the table below. Worker Marginal Product 50 30 WN 20 Which of the following will be true? (A) Each worker will receive a wage based on the marginal product of the last worker hired. (B) Each worker will receive a wage based on the marginal product of the first worker hired. B (C) Each worker will receive a wage based on the average of the marginal products of the workers. D) Worker 1 will receive the highest wage. (E) Worker 3 will receive the highest wage.15. National defense is an example of a public good 19. If the demand for insulin is price inelastic, a because 5 percent increase in the price of insulin will it requires tax revenues to fund any (A) have no effect on the total revenue of insulin production producers B) one person's use of it will decrease another (B) increase the total revenue of insulin person's ability to use it producers CY decrease the total revenue of insulin D (C) it is nonexcludable and nonrival C (D) the private market typically produces the producers socially efficient level of output "D) decrease the total spending on insulin by (E) the public is protected from invasion consumers E) cause the demand for insulin to be less elastic - short-run (E) No change6 OLLa WUCITIES a 21. Assume that good X is a normal good. Which of the following helps to explain why a decrease in the price of good X increases the quantity demanded of good X? (A) Good X becomes relatively less expensive than its substitutes, so consumers buy more of good X and fewer of the substitutes. (B) The marginal utility of consuming good X increases as more of good X is consumed. (C) The lower price of good X decreases the marginal utility per dollar; therefore, consumers buy more of good X. (D) The demand curve for good X shifts to the left. (E The supply curve for good X shifts to the right