Please answer the followin questions:

QUESTION 1

1. Using your own words, describe thelaw of increasing opportunity costs.Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.

QUESTION 2

1. Explain the difference between a change in demand and a change in quantity demanded.Be sure to specify what causes each to change and how they differ when graphed. How does the difference between these two concepts help us understand the use of the ceteris paribus assumption in economics?

QUESTION 3

1. At the optimal or efficient level of an activity, the activity's marginal benefit must
2. a.be zero.b.exceed the marginal cost of the activity.c.equal the marginal cost of the activity.d.be greater than zero.

QUESTION 4

1. If an economist says "the higher the price of oranges, the fewer oranges individuals will buy,ceteris paribus," this means that
2. a.as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges.b.the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives.c.as the price of oranges rises, individuals' preferences change and they no longer like oranges as much as they once did.d.individuals don't like high-priced oranges.

QUESTION 5

1. Which of the following is anormative macroeconomicsstatement?
2. a.The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.b.The central bank should increase the nation's money supply.c.Ford Motor Company's new advertising campaign ended up hurting General Motors' sales.d.The local government ought to spend more on recreational facilities.

QUESTION 6 Exhibit 1-2 Point X Y A 50 100 B 60 130 C 70 160 D 80 190 Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a twovariable diagram the result would be sloping O a. a downward; (nonlinear) curve 0 b. a downward; (straight) line 0 c. an upward; (nonlinear) curve 0 d. an upward; (straight) line 0 5. none of the above QUESTION 7 Exhibit 1 -3 Refer to Exhibit 1-3. According to the data provided in this table, what is the approximate slope of the line between points C and D (if these data were graphed with X on the horizontal axis and Y on the vertical axis)? 0 a. -0.17 O b. -6.00 O c. 0.17 0 d. 6.00 0 9. none of the above QUESTION 11 Exhibit 2-5 8 8 8 8 Television Sets (thousands per year) 8 s 10 20 40 50 60 Fax Machines (thousands per year) Refer to Exhibit 2-5. The economy is currently operating at point F. The opportunity cost of moving to point E is approximately televisions. O a. 35 O b. zero O c. 55 O d. 40 QUESTION 12 Exhibit 2-6 0 (1) (2) (3) (4) Refer to Exhibit 2-6. Which graph depicts the result of an increase in the number of immigrants entering the country in order to work? O a. (1) O b. (2) O c. (3) O d. (4) O e. none of the aboveQUESTION 16 Exhibit 2-8 Maria Maya Good X Good Y Good X Good Y 90 0 160 30 40 10 60 20 20 90 30 Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X? O a. Maria O b. Maya O c. Both Maria and Maya O d. Neither Maria nor Maya QUESTION 17 Exhibit 2-10 Person A Good X Good Y 200 150 50 100 100 50 150 200 Person B Good X Good Y 0 160 Refer Exhibit 2-10. Which of the following statements is true? 40 120 80 30 120 40 160 a. Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good Y and person B specializes in the production of good X. O b. Both person A and person B will benefit from trade as long as person B produces both good X and good Y, and person A produces neither good. O c. There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y) is the same for both persons. O d. Both person A and person B will benefit from trade as long as person A produces both good X and good Y, and person B produces neither good. O e. Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good X and person B specializes in the production of good Y.QUESTION 18 Exhibit 3-16 X (2) (3) (4) Refer to Exhibit 3-16. Which of the following is false? O a. Graph (4): As supply changes, equilibrium price stays the same. O b. Graph (1): There is a shortage of this good when the price is equal to P3. O c. Graph (3): As demand increases, equilibrium price remains constant. O d. Graph (2): As supply increases, equilibrium quantity remains constant. QUESTION 19 Exhibit 3-2 Price $2 X Quantity Good X Refer to Exhibit 3-2. Suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)? a. There was a decrease in the number of buyers and business taxes increased. O b. There was an increase in the number of buyers and business taxes increased. O c. There was an increase in the number of buyers and business taxes decreased. O d. There was a decrease in the number of buyers and business taxes decreased.QUESTION 20 Exhibit 3-5 Price (dollars) D Quantity Refer to Exhibit 3-5. In the market shown, if equilibrium was originally at point Z and the new equilibrium is now at point V, this change may have been caused by a. an increase in consumers' income (assuming that this is an inferior good) and a simultaneous improvement in technology in the production of this good. Ob. an increase in consumers' income (assuming that this is an inferior good) and no change in supply O c. a decrease in consumers' income (assuming that this is an inferior good) and no change in supply. d. a decrease in consumers' income (assuming that this is an inferior good) and a simultaneous decline in technology in the production of this good. QUESTION 21 Exhibit 3-6 Price of Good X Quantity of Good X Refer to Exhibit 3-6. If an increase in the price of good Y causes the demand for good X to shift from D 1 to D 2, goods X and Y are O a. neutral goods O b. normal goods O c. inferior goods. O d. substitutes e. complements. QUESTION 22 Exhibit 3-9 Price Price 1 $2 0 Quantity Supplied of X O Quantity Demanded of x Refer to Exhibit 3-9. A severe recession has sharply decreased the incomes of consumers. Knowing that X is a normal good, you expect a movement in the market for X from O a. F to E. O b. E to F. O c. A to B. O d. B to A.QUESTION 23 1 points Save Answer If the supply of and demand for a product decrease at the same time, then equilibrium O a. quantity must fall and equilibrium price must rise. O b. quantity and equilibrium price must both decline. O c. quantity must decline, but equilibrium price may either rise, fall, or remain unchanged. O d. price must fall, but equilibrium quantity may either rise, fall, or remain unchanged. QUESTION 24 1 points Save Answer When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber. Given that lumber is timber that has been sawed or split into planks and boards, explain in terms of supply and/or demand how the hurricane impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity): a. Domestic lumber b. Imported lumber C. New home construction For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial v 10pt O WORDS POWERED BY TINY QUESTION 25 1 points Save Answer information? Describe a possible path of adjustment in this market tment in this market based on revised consumer and producer expectations. Suppose corn producers expect the price of corn to rise next year, due to bad harvests. Based on this expectation, corn producers decide not bring to market part of the corn produced this year, hoping to sell it in the future for a better price. A vehicle of the financial media runs a story about this strategic decision, which then becomes known to the public at large. How might consumers change their own expectations based on this new [Note: there is more than one correct way of answering this question; the goal is to evaluate your capacity to reason critically using the analytical tools studied in this course]