PLEASE HELP!

5.

(01.04 MC) Business A must have ________ in cogs if it can produce them for a lower opportunity cost than any other producer of cogs. (1 point)

	an absolute advantage
	a comparative advantage
	a decreasing trade-off value
	relatively low-quality factors of production
	relatively poor manufacturing technology

6.

(01.04 MC) Use the production possibilities table below to answer the following question. Assume constant opportunity costs for Steven and Matthew.

	Units of Cheese in a Day	Fish in a Day
Steven	10	25
Matthew	30	10

Which of the following is true regarding Steven and Matthew's trade advantages? (1 point)

	Matthew has an absolute advantage in fish.
	Matthew has a comparative advantage in fish.
	Steven has an absolute advantage in cheese and fish.
	Steven has an absolute and comparative advantage in fish.
	Steven has absolute and comparative advantages in cheese.

8.

(01.05 MC) A consulting firm gives the managing director the following options to improve his company.

	Cost (thousands of dollars)	Benefit (thousands of dollars)
Option A	10	50
Option B	50	100
Option C	120	150
Option D	200	210
Option E	125	200

Based on the data provided, which option returns the lowest net benefit? (1 point)

	Option A
	Option B
	Option C
	Option D
	Option E

9.

(01.06 MC) The table below shows the marginal utility that David enjoys based on the number of t-shirts he purchases.

T-shirts Purchased	Marginal Utility
1	8
2	7
3	6
4	5
5	4
6	2

Based on the table above, what is the total utility that David enjoys from purchasing three t-shirts? (1 point)

	6 utils
	12 utils
	15 utils
	18 utils
	21 utils

12.

(02.01 MC) Which of the following would cause the demand curve for brooms to shift to the right, assuming that brooms were an inferior good? (1 point)

	The price of brooms increases.
	The price of a complement increases.
	The income of all consumers decreases.
	The economy strengthens because of decreased taxes.
	The production of brooms decreases because of vacuum cleaners.

13.

(02.02 MC) What will happen to the market supply curve of gadgets if a new gadget producer enters the market? (1 point)

	It will not change.
	It will become more elastic.
	There is insufficient data to determine.
	It will shift right at every price with more output supplied.
	It will shift left at every price with less output supplied.

14.

(02.02MC) What would be the effect of a new government subsidy on a good's supply curve, ceteris paribus? (1 point)

	No change
	A shift to the left
	A shift to the right
	A decrease in price
	A decrease in quantity supplied

18.

(02.05 MC) The average consumer income increased by 4%, and the quantity demanded of a good decreased by 2%. Which of the following statements is true? (1 point)

	The income elasticity of demand cannot be determined.
	The income elasticity of demand is 0.5; the good is normal.
	The income elasticity of demand is -0.5; the good is inferior.
	The income elasticity of demand is 2; the good is normal.
	The income elasticity of demand is -2; the good is inferior.

21.

(02.07 MC) Use the graph to answer the question that follows. (1 point)

Price Supply A P1 B E - - - - -- P2 C F - = - P3 D F- - - - - - - Demand - - Q1 Q2 Q3 Quantity (units)$50 MC $40 $30 ATC AVC Price $20 P $10 A 0 2 4 5 6 7 8 9 Quantity 10Price MC H AC M P, L N P, AR G P MR 0 Quantity 21 (units)MSC Price ($) MPC PC PE PF MSB Q' Quantity