Principles of MicroEconomics

7/b of a unit of capital goods 3 units of capital goods 6 units of capital goods 1/6 of a unit of capital goods 1 1. Which of the following is a characteristic of a sole proprietorship? Multiple Choice It is owned and managed by two or more people C It is an independent legal entity on its own It is owned and managed by one person The owner bears no personal responsibility for the debts of the business 14 12 B5. Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apple iles or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. If the consumer spent all of her budget on just apples or just bananas, how many apples or bananas Iftaximum would she be able to buy? Multiple Choice 12 apples or 8 bananas 8 apples or 12 bananas 16 apples or 12 bananas 8 apples or 16 bananasDrill Presses D LE O 2 3 4 Bread The total opportunity cost of 10 drill presses is Multiple Choice 1 unit of bread 0 units of drill presses 4 units of bread 3 units of drill presses7. Which of the following is not a typical characteristic of a market system? Multiple Choice self-interested behavior in the markets government ownership of most property resources freedom of enterprise competition in product and resource markets private property8. Which of the following is one of the Five Fundamental Questions? Multiple Choice What goods and services will be produced? Who should appoint the head of the central bank? Which products should be in scarce supply and which in excess supply? How much should society save?9. Answer the question based on the following information: Suppose 10 units of product X can be produced by employing just labor and capital in the three ways shown below. Assume the prices of labor and capital are as shown. Resource Production Production Production price Technique 1 Technique 2 Technique 3 Labor $ 2 5 Capital 5 3 Which technique is the most economically efficient Multiple Choice Technique 1 with total costs of $16 Technique 3 with total costs of $21 Technique 2 with total costs of $17 Technique I with total costs of $23