Question 1 (1 point)

Which of the following statements about Production Possibility Frontiers (PPF) in a two good economy are always TRUE?

I. A PPF is concave (bowed outward) when the opportunity cost of producing a good increases as more is produced

II. A PPF is concave (bowed outward) when the opportunity cost of producing a good decreases as more is produced

III. A PPF is straight when the opportunity cost of producing a good is 0

IV. A PPF is straight when the opportunity cost of producing a good is constant

Question 1 options:

a)	II., III.
b)	I., IV.
c)	II., IV.
d)	I., III.

Question 2 (1 point)

Derek is a baseball player for the New York Yankees (a professional sports team). Derek receives a large salary from the Yankees, and uses part of the money to purchase a new car. Derek's salary is an example of an exchange on the ____________ while his car purchase is an example of an exchange on the ______________ .

Question 2 options:

a)	Factor market; market for goods and services
b)	Factor market; factor market
c)	Market for goods and services; factor market
d)	Market for goods and services; market for goods and services

Question 3 (1 point)

Suppose the market for Toyotas is initially in equilibrium. Then, after a series of events the equilibrium price falls and the equilibrium quantity rises. Which of the following scenarios is the most likely to have caused this?

Question 3 options:

a	Toyota factory workers go on strike to demand higher wages.
b	Toyota implements a new cost-effective assembly line in its plants worldwide.
c	Toyota scored a record number of points in the latest car safety rating.
d	The price of cars made by Ford (Toyota's competitor) rises.

Question 4(1 point)

Market for Cars $12 S $10 $8 Price $6 $4 $2 D $0 O 100 200 300 400 500 600 700 800 900 1000 Quantity\fMarket for Rollercoaster Rides $7.00 $6.00 $5.00 $4.00 Price (per ride) $3.00 + + $2.00 S $1.00 -D-- $0.00 O 10 20 30 40 50 60 Quantity of Rides