Professor Elliott Spring, 2024 Review for Exam I 1) Consider the Production Possibilities Curve below. A. What does it mean to be on the curve (point A)? B. What does it mean to be inside the curve (point B)? C. What does it mean to be outside the curve (point C)? D. Can we ever get to point C if so how, and if not why not? 2) Define Economics. 3) Which is not an opportunity cost of my decision to go to the beach in North Carolina? a) Going to Florida. b) The cost of the gas to get there. c) Reading a book at home d) Staying in Oxford grading ECO201 quizzes. e) None of the above. 4) Do economists consider money on hand (or stocks and bonds) as part of capital? Carefully explain your answer. 5) What is opportunity cost, and give an example? 6) The bowed out shape of the production possibilities frontier is caused by what economic phenomenon? 7) Why would the US and the EU trade when by and large they have the same resources and can produce the same goods? 8) Give an example of an inferior good. If the price of an