Question 1 (5 points) () Listen (Table: The Production Possibility Frontier for the United States and Brazil) Use Table: The Production Possibility Frontier for the United States and Brazil. The opportunity cost of 1 cell phone for 15 box(es) of lilies. Table: The Production Possibility Frontier for the United States and Brazil United States Choice 1 Choice 2 Quantity of lilies (boxes) 1.000 0 Quantity of cell phones 0 2,000 Brazil Choice 1 Choice 2 Quantity of lilies (boxes) 2,000 0 Quantity of cell phones 0 1,000 ( a) Brazil; 0.5 Ob) Brazil; 1 ( c) the United States; 0.5 O d) the United States; 2Question 2 (5 points) I-I: Since the United Kingdom imports a large quantity of textiles from Sri Lanka. the overall wages of English textile workers have , while the price of textiles in the United Kingdom has O a) decreased; increased 0 '3) increased; not changed 0 C] decreased; decreased O C\" increased; decreased Question 3 (5 points) -u The slope of the production possibility 'ontier is generally a measure of: O a) the decrease in the output of one good when the output of the other good is increased. 0 b) the efficient level of production. 0 C) the rate at which people are willing to exchange goods, as determined by demand and supply. 0 d) the dollar cost of the good given up to get another good. Question 4 (5 points) () Listen In a single year, Germany can raise 100 tons of wheat or produce 1,000 boxes of daisies. In the same growing season, France can raise 50 tons of wheat or produce 750 boxes of daisies. Trade will take place between these two countries if 1 ton of wheat costs boxes of daisies. a) 20 Ob) 8 O c) 12 O d) 5Question 5 (5 points) () Listen If Canada can produce 30 tablets for every car it produces, and Malaysia can produce 15 tablets for every car it produces, has the advantage in car production. ( a) Canada; comparative ( b) Canada; absolute ( c) Malaysia; comparative O d) Malaysia; absoluteQuestion 6 (5 points) mu When a country exchanges goods with another country, in the short run: 0 a) consumers of the imported good may be worse o'. O b) producers in the exporting industry may be better o'. O C) consumers of the exported good may be better o'. Q d) producers in the importing industry are better off. Question 7 (5 points) mu In a single year, Germany can raise 100 tons of wheat or produce 1,000 boxes of daisies. In the same growing season, France can raise 50 tons of wheat or produce 750 boxes of daisies. In autarky, the opportunity cost of 1 ton ofwheat in Germany is: O a) 100 tons of wheat. O b) 10 boxes of daisies. O C) 1.000 boxes of daisies. Q d) 0.1 box of daisies. Question 8 (5 points) all If a country has the comparative advantage in producing lumber, then with free trade: O a) the domestic quantity supplied will be less than the domestic quantity demanded- O b) the country will import lumber. O C) consumer surplus in the market for lumber will increase. 0 d) producer surplus in the market for lumber will increase. Question 9 {5 points) mu If labor is abundant in India. but capital is scarce, when India opens to trade, the price of labor will , and the price of capital will 0 a) rise; rise 0 b) fall; fall O C) fall; rise 0 d) rise; fall Question 10 (5 points) all Lower wages in Taiwan reect labor productivity in Taiwan than in the United States. This means that if the United States moved high-tech industries to Taiwan, the overall cost of production would he in Taiwan than in the United States. O a) higher; higher 0 b) lower; lower 0 C) higher; lower 0 d) lower; higher Question 11 (5 points) Listen (Figure: The Linear Demand Curve for Golf Balls) Use Figure: The Linear Demand Curve for Golf Balls. As a producer, you are interested in maximizing your total revenues in this market. At what price should you sell your good? What is the corresponding total revenue? Price $20 18 16 N 0 2 4 6 8 10 12 14 16 18 20 Quantity ( a) $20; $200 ( b) so; $100 O c) $10; $100 O d) $5; $100Question 12 (5 points) I: .Tim's Big and Tall, a men's tie store, sold an average of 30 ties per day at $5 per tie but sold 50 of the same ties per day at $3 per tie. The price elasticity of demand, obtained using the midpoint method, is: O a) greater than 1 but less than 3. O b) greater than zero but less than 1. O C) equal to l. 0 d) greaterthan3. Question 13 (5 points) mu (F igure: The Demand Curve for Lattes) Use Figure: The Demand Curve for Lattes. The price elasticity of demand between $8 and $9, computed using the midpoint method, is approximately: Price $10 Hmwhmmuooc D p.- 23456?8910 Quantity 0 a) 1.80. O b) 0.56. O C) 0.18. 0 d) 5.67. Question 14 (5 points) Listen A good is likely to have an elastic demand curve if the: a) good is a necessity. (b) good accounts for a small share of consumer income. () consumer has significant time to respond to price changes. O d) good has few available substitutes.Question 15 (5 points) E () Listen (Figure: The Demand Curve for Car Insurance) Use Figure: The Demand Curve for Car Insurance. Demand 15 between $20 and $21, since total revenue when the price Price per policy B $2100 A 2000 9.9 10.0 Number of policies (per day) ( a) inelastic; stays the same; decreases ( b) elastic; increases; decreases O c) elastic; decreases; increases O d) inelastic; increases; increasesQuestion 16 (5 points) ) Listen The university hopes to raise more revenue by increasing student housing fees. This plan will work only if: ( a) the price effect is smaller than the quantity effect. ( b) there is no price or quantity effect. ( c) the price effect is larger than the quantity effect. ( d) the price effect and quantity effect are the same.Question 17 (5 points) I: If two goods are complements, their cross-mice elasticity of demand is: O a) negative. O b) positive. 0 C) equal to 0. 0 d) positive but almost equal to 0. Question 18 (5 points) all For which goods is the cross-price elasticity of demand MOST likely a large positive number? 0 a) French fries and onion rings 0 b) baseballs and baseball bats O C) all of these because the cross-price elasticity is a positive number 0 d) movie downloads and orange juice Question 19 (5 points) Listen A perfectly inelastic supply curve is: O a) downward sloping. O b) horizontal. O c) upward sloping. O d) vertical.Question 20 (5 points) all Maple syrup prices recently increased by 25%. In response. purchases of maple syrup decreased by 5%. The price elasticity of demand for maple syrup is: O a) 2. O b) 5. O c) 0.5. O C\" 0.2